How often are Royalties calculated on Gross Revenues for Affiliate Franchised Bhc Restaurants?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 6: Other Fees
OTHER FEES
| 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. |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the royalty fee for affiliate franchised Bhc restaurants is 4.5% of gross revenue. These royalties are calculated on the gross revenues received every two weeks.
The royalty payments are due monthly, specifically on the 5th day of the following month for the previous month's revenues. If the 5th falls on a banking holiday, the payment is due on the next business day. Bhc requires that franchisees make these payments via electronic funds transfer (EFT).
Bhc retains the right to change the frequency of royalty payments. They can 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 such a change.