factual

Who is responsible for determining the cost of liquor licenses and permits for a Bhc restaurant?

Bhc Franchise · 2025 FDD

Answer 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. Specifically, if the Bhc restaurant is configured to allow on-premises consumption of beer and wine, the franchisee must obtain and maintain the necessary licenses and permits from the relevant state or local agency. While the costs of these licenses and permits can vary, it is the franchisee's responsibility to determine the exact cost. This applies to both individual franchisees and master franchisees ensuring subfranchisees comply.

This means that prospective Bhc franchisees need to research and budget for these costs independently. The FDD does not provide a fixed amount or estimate, emphasizing that these costs vary. It is crucial for franchisees to contact their state and local agencies to understand the specific requirements and fees associated with obtaining the necessary licenses and permits for selling beer and wine at their Bhc restaurant.

This requirement aligns with standard franchising practices, where franchisees typically bear the responsibility for understanding and complying with local regulations and covering associated costs. Franchisees should factor in these costs when assessing the overall investment required to start and operate a Bhc franchise. They should also consult with legal and financial advisors to ensure they fully understand their obligations and potential expenses related to liquor licenses and permits.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.