Can Bhc require Royalty Fees to be paid weekly?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 6: Other Fees
OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee from Affiliate Franchised BHC Restaurants | 4.5% of Gross Revenue (2)(3) | Payable monthly on the following 5th days for the previous month (unless that day is a banking holiday, in which case the Royalties are due and payable on the next business day). Royalties will be calculated on the Gross Revenues received during every two (2) weeks. | Paid to us. We require payment by electronic funds transfer ("EFT"). We reserve the right, upon 90 days' written notice to you, to require you to pay Royalty Fees on a more frequent basis, including monthly or weekly |
| Royalty Fee from Subfranchised BHC Restaurants | 4.5% Gross Revenues of Subfranchised BHC Restaurants. (3) | Same date as the Royalty Fee from Affiliate Franchised BHC Restaurants | Paid to us. We require payment by electronic funds transfer ("EFT"). We reserve the right, upon 90 days' written notice to you, to require you to pay Royalty Fees on a more frequent basis, including monthly or weekly The maximum royalty you can charge Subfranchisee is 7% of Gross Revenues. |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc franchisees typically pay a royalty fee of 4.5% of gross revenue monthly. However, Bhc retains the right to change the payment schedule.
Bhc can require franchisees to pay royalty fees more frequently, including monthly or even weekly. To do so, Bhc must provide the franchisee with 90 days' written notice before implementing the change. This applies both to affiliate franchised Bhc restaurants and subfranchised Bhc restaurants.
This change in payment frequency could impact a franchisee's cash flow management. While the percentage remains the same, more frequent payments mean smaller but more regular deductions from revenue. Franchisees should prepare for this potential shift and factor it into their financial planning.