What payment method is required for the Royalty Fee from Affiliate Franchised Bhc Restaurants?
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 |
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 from Affiliate Franchised Bhc Restaurants is 4.5% of Gross Revenue. This fee is payable monthly on the 5th day of the following month for the previous month's revenue, unless that day is a banking holiday, in which case it is due on the next business day. The royalty is calculated on the Gross Revenues received during every two weeks.
Bhc requires that franchisees pay this royalty fee via electronic funds transfer (EFT). However, Bhc retains the right to change the payment frequency to monthly or weekly, provided they give the franchisee 90 days' written notice.
It is important for prospective franchisees to note that Bhc specifies the payment method and reserves the right to alter the payment schedule with adequate notice. Franchisees should ensure they have the capability to make payments via EFT and be prepared for potential adjustments to the payment frequency.