Are payments to Bhc non-refundable?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
L INVESTMENT: First Affiliate Franchised BHC Restaurant**
| Type of | Amount** | Method of | When Due | To Whom Payment |
|---|---|---|---|---|
| Expenditure | Payment | Is to | ||
| (1) | Be Made | |||
| Initial Franchise | $40,000 | Lump sum; | At signing of MFA | Franchisor |
| Fee (2) | non-refundable | |||
| Initial Deposit | $20,000 | Lump sum; refundable at expiration of Franchise Agreement | At signing of MFA. | Franchisor |
| Type of Expenditure (1) | Amount** | Method of Payment | When Due | To Whom Payment Is to Be Made |
| ---------------------------------------------------------- | ----------------------------- | --------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------- |
| Inspection Fee | $600 | Immediately upon our demand after leasehold improvement | We will make three (3) on-site visits to the Master Franchised BHC Restaurant before opening for inspection, which include a complete a final "walk through" inspection of the Master Franchised BHC Restaurant without you incurring additional fees. Any deficiencies noted by us because of our inspection must be corrected by you within 30 days or this Agreement may be terminated without any liability to us. If we provide any additional on-site visits after the third (3rd) time, you must reimburse us for the Actual Costs of each individual on-site visit. | Franchisor |
| Grand Opening | $10,000 to | Lump sum; | During the first 60 days | Advertisers and |
| Marketing | $13,000 | non-refundable | of opening | Vendors |
| Site Design Review Fee | $2,500 | Lump sum; non-refundable | Upon Submission of floor plan | Paid to Franchisor /vendors. |
| Site Review Fee | $2,000 to $4,00 |
Source: Item 7 — Estimated Initial Investment: (FDD pages 18–25)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, certain payments made to the franchisor are non-refundable. Specifically, the MF Development Fee, a lump sum paid upon signing the Master Franchise Agreement (MFA) for each Bhc restaurant to be opened, is non-refundable under any circumstances, even if the franchisee fails to open a restaurant. Additionally, the Initial Franchise Fee of $40,000 is non-refundable.
Other fees that are non-refundable include the Grand Opening Marketing fee (ranging from $10,000 to $13,000), the Site Design Review Fee of $2,500, and the Site Review Fee (ranging from $2,000 to $4,000). However, the Initial Deposit of $20,000 is refundable at the expiration of the Franchise Agreement.
Prospective Bhc franchisees should carefully consider these non-refundable fees as part of their initial investment. It is important to note that while payments to Bhc may be non-refundable, the refundability of payments made to third parties will depend on the specific arrangements made with those parties. Franchisees should clarify the refund policies of third-party vendors and suppliers before making any payments.