What payment method is required for the Royalty Fee from Subfranchised 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 from Subfranchised Bhc Restaurants is 4.5% of Gross Revenues of Subfranchised Bhc Restaurants. This fee is due on the same date as the Royalty Fee from Affiliate Franchised Bhc Restaurants. Bhc requires payment via electronic funds transfer (EFT).
Bhc retains the right to modify the payment frequency for Royalty Fees. With 90 days' written notice, Bhc can require franchisees to pay Royalty Fees more frequently, including monthly or weekly. The maximum royalty that a franchisee can charge a subfranchisee is 7% of Gross Revenues.
It is important for prospective Bhc franchisees to understand the implications of electronic funds transfer, including any associated bank fees or potential security concerns. Franchisees should also be prepared for the possibility of more frequent royalty payments if Bhc chooses to implement that change with proper notice. The franchisee should also be aware of the maximum royalty they can charge their subfranchisees.