What is the 'Renewal Fee' that a Bhc franchisee must pay when signing the Renewal Franchise Agreement?

According to Bhc's 2025 Franchise Disclosure Document, a franchisee must pay a Renewal Fee of $40,000 when signing the Renewal Franchise Agreement. This fee is payable to Bhc at the time of signing the agreement for an additional franchise term.

In addition to the Renewal Fee, the franchisee must also meet other obligations to qualify for renewal. These include satisfying all monetary obligations to Bhc and its affiliates, as well as fulfilling all other material obligations under the existing agreement. Bhc has the right to examine the franchisee's books and records to verify compliance with these requirements within 120 days of the renewal date.

Furthermore, franchisees are required to make necessary physical modifications to their BHC Restaurant to ensure it aligns with the current trade dress and system standards, and to accommodate any new BHC products. These modifications must be completed before or no later than 90 days after the Renewal Franchise Agreement is executed. This could involve remodeling to meet current brand standards and updating equipment.