When is the Royalty Fee from Affiliate Franchised Bhc Restaurants due?
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. |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Royalty Fee from Affiliate Franchised Bhc Restaurants, which is 4.5% of Gross Revenue, is payable monthly on the 5th day of the following month for the previous month's revenue. If the 5th day falls on a banking holiday, the royalty payment is due on the next business day. These royalties are calculated based on the Gross Revenues received every two weeks. Bhc requires that franchisees make these payments via electronic funds transfer (EFT).
Bhc retains the right to modify the payment schedule for Royalty Fees. According to the FDD, Bhc can, with 90 days' written notice, require franchisees to pay Royalty Fees more frequently, including on a monthly or weekly basis. This change would allow Bhc to receive royalty payments sooner and could impact the franchisee's cash flow management.
It is important for prospective Bhc franchisees to note that the royalty payment terms are subject to change at the discretion of the franchisor, with advance notice. Franchisees should factor this potential change into their financial planning and be prepared to adjust their payment schedules if required by Bhc. Understanding the conditions under which Bhc can alter the payment frequency is crucial for managing the financial obligations of the franchise.