Who is responsible for the costs associated with re-inspections of a Bhc franchise?

According to Bhc's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the costs associated with re-inspections. Specifically, the franchisee must pay for accommodation, transportation, meals, daily allowances, and other expenses incurred by Bhc personnel during these re-inspections. This applies when Bhc representatives re-inspect a franchised restaurant or facility to ensure that previously noted deficiencies have been corrected.

This means that if a Bhc franchisee fails an initial inspection and Bhc needs to send its representatives for follow-up visits, the franchisee will bear the financial burden of these visits. These costs can potentially add up, especially if multiple re-inspections are required to rectify the issues. The FDD does not specify a limit to the number of re-inspections that may occur or provide an estimate of the potential costs, so franchisees should be aware that these expenses could be significant if they struggle to maintain compliance.

This arrangement is fairly common in franchising, as it incentivizes franchisees to promptly address any shortcomings identified during inspections. By holding the franchisee financially accountable for re-inspection costs, Bhc aims to ensure that its brand standards are consistently upheld across all franchise locations. Prospective franchisees should factor in these potential costs when evaluating the overall financial viability of a Bhc franchise.