Under what circumstances can the Bhc Transfer Review Fee exceed $5,000.00?
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 standard transfer review fee is $5,000. However, this fee can increase to cover Bhc's out-of-pocket expenses related to the transfer. These expenses specifically include attorney's fees.
This means that if Bhc incurs legal costs exceeding $5,000 while reviewing the transfer application, the franchisee will be responsible for paying the difference. This is a fairly standard practice in franchising, as the franchisor needs to ensure the transfer is legally sound and protects the brand's interests.
For a prospective Bhc franchisee, this implies that the actual cost of transferring a franchise could be higher than the stated $5,000. It would be prudent to inquire with Bhc about the typical range of these out-of-pocket costs and what factors might cause them to increase. Understanding these potential costs upfront can help in financial planning for a future transfer.