Who is responsible for determining the cost of liquor licenses for a Bhc franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) If the Franchised BHC Restaurant is configured for the on-premises consumption of beer and wine, Franchisee must obtain and maintain the necessary licenses and permits from Franchisee's state or local agency regulating the on- premises sale and consumption of beer and wine to permit Franchisee to offer and sell at the Franchised BHC Restaurant beer and wine as authorized in the Operations Manual (or otherwise by Franchisor in writing).
The costs of these licenses and permits vary, but it is Franchisee's responsibility to determine exactly what this liquor license will cost.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisee is responsible for determining the cost of liquor licenses and permits. If the Bhc restaurant is configured for on-premises consumption of beer and wine, the franchisee must obtain and maintain the necessary licenses and permits from their state or local agency. These agencies regulate the on-premises sale and consumption of beer and wine, allowing the franchisee to offer and sell these beverages at their Bhc restaurant as authorized in the Operations Manual or in writing by Bhc.
This means that prospective Bhc franchisees need to research and budget for the costs associated with obtaining and maintaining these licenses. The actual costs can vary significantly depending on the specific location and the regulations of the local and state agencies. It is crucial for franchisees to contact the relevant agencies to get accurate cost estimates and understand the requirements for obtaining the necessary permits.
This requirement is standard practice in the franchise industry, as franchisees are generally responsible for complying with local regulations and obtaining the necessary permits to operate their businesses. Failing to obtain the required licenses and permits can result in fines, penalties, and even the closure of the Bhc restaurant. Therefore, it is essential for franchisees to prioritize this aspect of setting up their business.