What is the 'Transfer Review Fee' required by Bhc for a franchise transfer?
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, a Master Franchisee seeking to transfer their franchise must pay a non-refundable "Transfer Review Fee." This fee is set at $5,000.00. However, the FDD specifies that the fee could be greater than $5,000.00 if Bhc's out-of-pocket costs associated with the transfer or assignment, including attorney's fees, exceed that amount.
This means that while the base fee is $5,000.00, a franchisee should be prepared to potentially pay more to cover Bhc's expenses. This is a fairly standard practice in franchising, as the franchisor needs to review the qualifications of the proposed transferee and ensure they meet the brand's standards. The fee covers the franchisor's administrative and legal costs in conducting this review.
It is important for a prospective Bhc franchisee to understand that this fee is non-refundable, regardless of whether the transfer is ultimately approved. Additionally, the franchisee should inquire about what specific expenses could cause the fee to exceed $5,000.00 to better anticipate the potential costs associated with a transfer.