Are payments made to Bhc refundable, and under what conditions?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vii) upon approval of the transfer, Franchisee pays Franchisor a non-refundable "Transfer Fee" of 100% of Franchisor's then-current Initial Franchise Fee per Franchised BHC Restaurant
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the transfer fee is non-refundable. Specifically, if a franchisee seeks approval to transfer their franchise to a new owner and Bhc approves this transfer, the franchisee must pay Bhc a "Transfer Fee".
This transfer fee is equal to 100% of the then-current Initial Franchise Fee for each Franchised Bhc Restaurant. Because the transfer fee is explicitly described as "non-refundable", a franchisee will not receive this payment back under any circumstances, even if the transfer does not ultimately occur after Bhc approval.
Franchise agreements often contain various fees, some of which may be refundable under specific conditions, while others, like this transfer fee, are non-refundable to cover the administrative costs and efforts associated with the transfer process. A prospective Bhc franchisee should carefully consider this non-refundable fee when planning for the potential sale or transfer of their franchise in the future.