Does Bhc offer financing for real estate purchases related to the franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, we do not offer direct or indirect financing to franchisees for any items.
- (2) Real Estate.
A BHC Restaurant occupies about 1,500 to 3,500 square feet of space.
Rent depends on geographic location, size, local rental rates, businesses in the area, site profile, and other factors and could be considerably higher in large metropolitan areas than in more suburban or small-town areas.
BHC Restaurants can be located in strip shopping centers, shopping malls, free-standing units, and other venues in commercial areas and in residential areas.
We anticipate that the Affiliate Franchisee will rent the Master Franchised BHC Restaurant's premises.
If the Affiliate Franchisee chooses to purchase the land or building, the Affiliate Franchisee will incur substantial additional costs and expenses, which we cannot meaningfully estimate.
Source: Item 10 — Financing (FDD page 29)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc does not offer direct or indirect financing to franchisees for any items, including real estate. Item 7 of the FDD mentions that if an affiliate franchisee chooses to purchase land or a building, they will incur substantial additional costs and expenses, which Bhc cannot meaningfully estimate. This suggests that franchisees are responsible for securing their own financing for real estate purchases.
Bhc anticipates that the Affiliate Franchisee will rent the Master Franchised BHC Restaurant's premises. The FDD notes that real estate costs can vary significantly based on location, size, local rental rates, and other factors. Bhc Restaurants can be located in various settings such as strip shopping centers, shopping malls, free-standing units, and other venues in commercial and residential areas.
Prospective franchisees should be prepared to cover real estate costs through their own financing or leasing arrangements. Given that Bhc does not provide financing, franchisees need to have sufficient capital or secure loans from third-party lenders to cover these expenses. This is a common practice in the franchise industry, where franchisees often bear the responsibility for securing their own financing.