What is the non-refundable 'Transfer Review Fee' for a Bhc franchise assignment?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
e notifies Franchisor of Master Franchisee's intent to sell, transfer, or assign the Franchise, all or substantially all of the assets of the BHC Restaurant, or a controlling or non-controlling interest in Master
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must pay a non-refundable "Transfer Review Fee" of $5,000 when transferring or assigning their franchise. However, the fee could be greater than $5,000 if Bhc's out-of-pocket costs associated with the transfer/assignment, including attorney's fees, exceed that amount.
This fee is intended to cover Bhc's expenses for reviewing the proposed transfer and the qualifications of the potential new franchisee. It is important to note that this fee is non-refundable, regardless of whether the transfer is ultimately approved or not. This means a franchisee will not get this money back even if the transfer falls through or is rejected by Bhc.
Prospective franchisees should factor this potential cost into their business plans if they anticipate selling their franchise in the future. It is also advisable to inquire with Bhc about what specific costs might cause the transfer review fee to exceed the initial $5,000, to better prepare for potential expenses during a transfer.