Are Site Design Review Fee and Site Review Fee applicable to Bhc franchisees?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
of the Subfranchised BHC Restaurants.
Before you open your first Affiliate Franchised BHC Restaurant or your Subfranchisee open their Subfranchised BHC Restaurant, as applicable, you, your Affiliate Franchisee or your Subfranchisees, as applicable, must purchase opening inventory of merchandise and supplies that includes certain proprietary products that you, your Affiliate Franchisee, or your Subfranchisees, as applicable, must purchase from us and our affiliates. We estimate that your, your Affiliate Franchisee's, or your Subfranchisees', as applicable, cost of pre-opening inventory for each Affiliate Franchised BHC Restaurant or Subfranchised BHC Restaurant will be between $10,000 to $20,000. You, your Affiliate Franchisee, and your Subfranchisees must also pay for Site Design Review Fee and Site Review Fee, as applicable.
There are no other initial fees or payments for services or goods received from us or our a
Source: Item 5 — Initial Fees (FDD pages 11–12)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees are required to pay both a Site Design Review Fee and a Site Review Fee. Specifically, franchisees must cover all costs and expenses that Bhc incurs for the site design review, which is $2,500, and a separate site review, which ranges from $2,000 to $4,000. These fees are in addition to the pre-opening inventory costs, which are estimated to be between $10,000 and $20,000.
This means that before opening a Bhc restaurant, a franchisee should budget for these site-related fees in addition to other initial investments. The Site Design Review Fee is a fixed cost, while the Site Review Fee can vary, so franchisees should clarify the factors that influence this range to budget accordingly. These fees are paid to Bhc for their services in reviewing and approving the site.
It is important to note that while Bhc offers a sample prototype layout and floor plan, the franchisee is responsible for employing their own architects, designers, and engineers to adapt these plans to the specific location. The franchisee is also responsible for obtaining all necessary permits and licenses. The Site Design Review Fee and Site Review Fee are separate from these costs, covering Bhc's review and consent of the site and design plans.
Prospective Bhc franchisees should consider these fees as part of their initial investment and ensure they have sufficient capital to cover these expenses. Understanding the scope of services provided by Bhc for these fees and the factors that could influence the Site Review Fee range is crucial for financial planning.