What is the minimum notice Bhc must provide before changing the royalty payment frequency?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee from Affiliate Franchised BHC Restaurants | 4.5% of Gross Revenue (2)(3) | Payable monthly on the following 5th days for the previous month (unless that day is a banking holiday, in which case the Royalties are due and payable on the next business day). Royalties will be calculated on the Gross Revenues received during every two (2) weeks. | Paid to us. We require payment by electronic funds transfer ("EFT"). We reserve the right, upon 90 days' written notice to you, to require you to pay Royalty Fees on a more frequent basis, including monthly or weekly |
| Royalty Fee from Subfranchised BHC Restaurants | 4.5% Gross Revenues of Subfranchised BHC Restaurants. (3) | Same date as the Royalty Fee from Affiliate Franchised BHC Restaurants | Paid to us. We require payment by electronic funds transfer ("EFT"). We reserve the right, upon 90 days' written notice to you, to require you to pay Royalty Fees on a more frequent basis, including monthly or weekly The maximum royalty you can charge Subfranchisee is 7% of Gross Revenues. |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc has the right to change the frequency of royalty fee payments. Currently, royalty fees are paid monthly on the 5th day of the following month for the previous month's gross revenues, unless that day is a banking holiday, in which case it is due the next business day.
Bhc requires payment by electronic funds transfer (EFT). However, Bhc reserves the right to require franchisees to pay royalty fees on a more frequent basis, including monthly or weekly.
Bhc must provide franchisees with 90 days' written notice before implementing a change to a more frequent royalty payment schedule. This gives franchisees advance warning to adjust their accounting and cash flow procedures accordingly.