What does the MF Development Fee for each Bhc Restaurant opened under the MFA not exceed?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
The MF Development Fee will vary depending on the Development Area, the number of Master Franchised BHC Restaurants, and other special circumstances provided the MF Development Fee for each BHC Restaurants to be opened under the MFA shall not exceed then current Initial Franchise Fee.
Upon signing the MFA, you pay a lump sum, non-refundable MF Development Fee for each Master Franchised BHC Restaurant to be opened under the MFA.
The MF Development Fee is non-refundable under any circumstances, even if you fail to open a Master Franchised BHC Restaurant.
Source: Item 7 — Estimated Initial Investment: (FDD pages 18–25)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the MF Development Fee for each Bhc Restaurant to be opened under the Master Franchise Agreement (MFA) will not exceed the then-current Initial Franchise Fee.
This means that when a master franchisee signs an agreement to develop multiple Bhc restaurants, the fee they pay for the development rights to each individual restaurant cannot be higher than what Bhc is charging for a single, standard franchise at that time. The MF Development Fee can vary depending on the development area, the number of franchised Bhc Restaurants, and other special circumstances.
Bhc requires the master franchisee to pay a lump sum, non-refundable MF Development Fee for each Bhc Restaurant to be opened under the MFA upon signing the agreement. This fee is non-refundable, even if the master franchisee fails to open a restaurant. Prospective master franchisees should carefully consider the number of restaurants they commit to developing, as they will be obligated to pay the development fee for each, regardless of whether they ultimately open the location.