What does the 'Transfer Review Fee' for a Bhc franchise assignment cover?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
e notifies Franchisor of Master Franchisee's intent to sell, transfer, or assign the Franchise, all or substantially all of the assets of the BHC Restaurant, or a controlling or non-controlling interest in Master
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Transfer Review Fee covers the franchisor's costs when a franchisee wants to transfer their franchise to someone else. The fee is $5,000, but it could be higher if Bhc's costs for the transfer or assignment, including attorney's fees, are more than that amount. This fee is non-refundable.
This means that if a Bhc franchisee decides to sell their franchise, they will need to pay this fee to Bhc to cover the expenses Bhc incurs while reviewing and processing the transfer. These costs can include legal fees and administrative work. The franchisee should be prepared to pay more than $5,000 if Bhc's costs exceed that amount.
It is important to note that the fee is non-refundable, regardless of whether the transfer is ultimately approved. This is a common practice in franchising, as the franchisor will still incur costs in reviewing the application even if the transfer does not go through. Therefore, a Bhc franchisee should carefully consider the likelihood of the transfer being approved before paying the Transfer Review Fee.