Is the 'Transfer Review Fee' for a Bhc franchise assignment refundable?
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 associated with the transfer or assignment of a franchise is not refundable. The fee is $5,000.00, but may be higher if Bhc's out-of-pocket costs associated with the transfer/assignment, including attorney's fees, exceed that amount.
This means that a prospective Bhc franchisee who later decides to sell or transfer their franchise will need to pay this fee to Bhc to cover the costs of reviewing the transfer application. This fee is due regardless of whether the transfer is ultimately approved or not, so it's an important cost to consider when planning for a potential exit strategy.
It is typical in the franchise industry for franchisors to charge a transfer fee to cover their administrative and legal costs associated with reviewing and approving a franchise transfer. The fact that the Transfer Review Fee is non-refundable is also a fairly common practice, as the franchisor incurs these costs regardless of the outcome of the transfer request.