Are payments to Bhc 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 $4,000 | Lump sum; |
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, while the refundability of payments to third parties depends on the specific arrangements made. Specifically, the MF Development Fee and certain other fees are non-refundable. However, the initial deposit of $20,000 is refundable at the expiration of the Franchise Agreement.
For prospective Bhc franchisees, this means that careful consideration should be given to the financial implications of the non-refundable fees. The MF Development Fee, in particular, is non-refundable under any circumstances, even if the franchisee fails to open a Master Franchised Bhc Restaurant. This highlights the importance of thorough due diligence and a solid business plan before committing to the franchise.
It is also important for prospective franchisees to understand the terms and conditions of agreements with third-party suppliers, government agencies, or other providers, as the refundability of payments to these entities will depend on the specific arrangements made. Franchisees should clarify these terms before making any payments to third parties. The FDD recommends consulting with business advisors to fully understand the financial commitments and potential risks associated with the Bhc franchise.