When is the Royalty Fee from Subfranchised Bhc Restaurants due?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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, the Royalty Fee from Subfranchised Bhc Restaurants is due on the same date as the Royalty Fee from Affiliate Franchised Bhc Restaurants. Specifically, this means the royalty fee is payable monthly on the 5th day of the following month for the previous month's revenues, unless that day is a banking holiday. If the 5th falls on a banking holiday, the royalties are due on the next business day. Bhc calculates royalties on Gross Revenues received every two weeks. Payment must be made via electronic funds transfer (EFT).
Bhc retains the right to change the frequency of royalty payments. Bhc can require franchisees to pay Royalty Fees on a more frequent basis, including monthly or weekly, but they must provide 90 days' written notice before implementing such a change.
The royalty fee is 4.5% of Gross Revenues of Subfranchised Bhc Restaurants. However, the royalty that the franchisee charges to subfranchisees cannot exceed 7% of the Gross Revenues of the Subfranchised Bhc Restaurants.