To whom are the Royalty Fees from Affiliate Franchised Bhc Restaurants paid?
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 |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the royalty fees from Affiliate Franchised Bhc Restaurants are paid directly to Bhc. The royalty fee is 4.5% of Gross Revenue. These fees are payable monthly on the 5th day following the previous month, unless that day is a banking holiday, in which case the royalties are due on the next business day.
The document specifies that Bhc requires payment by electronic funds transfer (EFT). However, Bhc retains the right to change the payment frequency to monthly or weekly, provided they give the franchisee 90 days' written notice.
Understanding the recipient and payment terms of royalty fees is crucial for prospective Bhc franchisees. It ensures clarity in financial obligations and helps in managing cash flow effectively. Franchisees should be prepared to adhere to the electronic payment method and be aware of the potential for more frequent payment schedules if implemented by Bhc.