What is the penalty fee for failing to submit required reports to Bhc, and how is it charged?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
t and Loss Statement) or equivalent portion of Franchisee's federal tax return that relates to the Franchised BHC Restaurant and Franchisee's operation of the Franchised Business.
- (c) On the Effective Date (and any time thereafter that this date changes), Franchisee must notify Franchisor of Franchisee's fiscal year end date.
- (d) Franchisee must maintain and preserve all books, records, and accounts of or rel
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees face a penalty for failing to submit required reports. The penalty is $100 per occurrence or $100 per week.
Bhc will debit the franchisee's bank account if any report is not submitted within ten days of the request. The fees collected from these penalties are allocated to the Marketing and Promotion Fees contribution, if such a fee is established, or directly to Bhc.
The franchisee will continue to incur this fee for every week the required reports are not submitted, meaning the penalty is ongoing until compliance is achieved. This highlights the importance of adhering to the reporting requirements outlined in the Operations Manual or as otherwise communicated by Bhc in writing.