What is presumed regarding the premises of the Master Franchised Bhc Restaurant in the estimates?

According to Bhc's 2025 Franchise Disclosure Document, the estimates provided presume that the Affiliate Franchisee will lease the premises for the Master Franchised Bhc Restaurant. However, if the Affiliate Franchisee chooses to purchase the land or building, they will incur substantial additional costs and expenses, which Bhc cannot meaningfully estimate.

This distinction is important for prospective franchisees because leasing versus purchasing the property can significantly impact the initial investment required. The estimated initial investment figures are based on the assumption of leasing, so franchisees need to be aware that purchasing would involve costs outside of these estimates.

Bhc indicates that the cost of real estate depends on factors such as geographic location, size, local rental rates, businesses in the area, and site profile. Bhc Restaurants can be located in various venues, including strip shopping centers, shopping malls, free-standing units, and other commercial and residential areas. The size of a Bhc Restaurant typically ranges from 1,500 to 3,500 square feet.

Prospective franchisees should carefully consider their real estate options and associated costs, keeping in mind that the initial investment estimates provided by Bhc are based on leasing and do not account for the potentially substantial additional costs of purchasing the property.