About BHC USA(Master) Franchise
BHC Chicken is a Korean-style fried chicken franchise concept offering dine-in, carry-out, drive-thru, and delivery restaurant services.
Under a multi-unit master franchise model, master franchisees grant subfranchises and operate affiliate restaurants that showcase classic Korean flavor fried chicken including Korean cheese seasoning, Korean soy sauce, and sweet and spicy sauce varieties, along with sandwiches, wraps, Korean cuisines, beverages, and related merchandise.
The target market is all individuals within reasonable proximity to a BHC Restaurant, and the business operates year-round serving the general public.
BHC USA(Master) Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 per restaurant | One-time payment upon signing |
| Royalty Fee | 4.5% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2.5% of Gross Revenue (not currently required; reserved for when 50+ BHC Restaurants are in operation) | National brand fund |
| Total Investment Range | $883,100 – $2,056,100 | Includes build-out, inventory, working capital |
The investment range of $883K–$2.1M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4.5% of Gross Revenue) and marketing fee (2.5% of Gross Revenue (not currently required; reserved for when 50+ BHC Restaurants are in operation)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| MF Development Fee (Master Franchise) | $200,000 | $200,000 |
| Initial Deposit (Master Franchise) | $100,000 | $100,000 |
| Office Equipment and Supplies | $0 | $5,000 |
| Business Office | $0 | $15,000 |
| Storage and Product Delivery Expenses | $0 | $5,000 |
| Initial Training Fee (Master Franchise) | $8,000 | $8,000 |
| Opening Inventory and Supplies, Uniforms for First Affiliate Restaurant | $10,000 | $20,000 |
| Insurance (Master Franchise) | $7,000 | $10,000 |
| Utility Deposit, Business Licenses (Master Franchise) | $5,000 | $10,000 |
| Professional Fees (Master Franchise) | $5,000 | $10,000 |
| Additional Funds - 3 Months (Master Franchise) | $60,000 | $150,000 |
| Initial Franchise Fee (First Affiliate Restaurant) | $40,000 | $40,000 |
| Initial Deposit (First Affiliate Restaurant) | $20,000 | $20,000 |
| Inspection Fee | $600 | $600 |
| Grand Opening Marketing | $10,000 | $13,000 |
| Site Design Review Fee | $2,500 | $2,500 |
| Site Review Fee | $2,000 | $4,000 |
| Architectural Design Development and Permitting | $15,000 | $30,000 |
| Lease: Initial Rent / Deposits | $7,000 | $20,000 |
| Leasehold Improvement, Remodeling | $200,000 | $1,000,000 |
| Furniture, Equipment and Fixtures | $75,000 | $150,000 |
| Initial Training Fee (First Affiliate Restaurant) | $8,000 | $8,000 |
| Opening Inventory and Supplies, Uniforms | $10,000 | $20,000 |
| Insurance (First Affiliate Restaurant) | $7,000 | $10,000 |
| Computer System (POS) | $7,000 | $10,000 |
| Computer System Service Fees | $4,000 | $10,000 |
| Signage | $10,000 | $15,000 |
| Utility Deposit, Business Licenses (First Affiliate Restaurant) | $5,000 | $10,000 |
| Professional Fees (First Affiliate Restaurant) | $5,000 | $10,000 |
| Additional Funds - 3 Months (First Affiliate Restaurant) | $60,000 | $150,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $40,000 (100% of then-current Initial Franchise Fee per BHC Restaurant) |
| Renewal Fee | $40,000 per Master Franchise BHC Restaurant |
| Audit Fee | $10,000 to $20,000 |
| Product Purchases | $25,000 to $40,000 |
| Compensation for Development Delays | $40,000 per restaurant short of development quota |
| Site Design Review Fee | $2,500 |
| Architectural Design Development and Permitting | $15,000 to $30,000 |
| Inspection Fee | $600 |
| Post-Opening Training | $4,000 per person |
| Transfer Review Fee | $3,500 minimum |
| Alternative Supplier Testing Fee | $500 to $1,000 |
| Late Payment Fee | $100 per occurrence plus 10% annual interest |
| Failure to Submit Required Report Fee | $200 per week |
| Dishonored Item Fee | $100 per occurrence |
| Site Review Fee | $2,000 to $4,000 |
| Management Fee | Reimbursement of costs plus 15% administration charge |
| Insurance | Varies |
| Indemnification | Varies |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 6 to 7 days (54 to 63 hours) plus 9 additional hours for Master Franchisee program |
| Classroom Training | 36 hours |
| On-the-Job Training | 27 hours |
| Training Location | Franchisor Facility and Franchised BHC Restaurant |
| Additional Training | Post-opening training available upon request at $4,000 per person. Annual conferences, conventions, or training sessions may be conducted periodically. No additional training programs or refresher courses are required but may be provided. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Development Area generally consists of a city or portion of a city |
| Description | Master franchisee receives exclusive development rights and operating rights within a specific Development Area. Franchisor will not establish or franchise any other BHC Restaurant in the Development Area during the term of the MFA, subject to captive location exceptions (military bases, transportation facilities, sports facilities, malls, hospitals, hotels, casinos, ghost kitchens, etc.). Territory cannot be altered without mutual written agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Additional 10-year terms |
| Renewal Fee | $40,000 per Master Franchise BHC Restaurant |
| Renewal Conditions | Written notice at least 120 days before end of term; sign then-current MFA or addendum; not in default; complete additional training if required; pay renewal fee; remodel restaurant; sign general release; comply with other reasonable conditions prescribed by franchisor |
| Transfer Fee | $40,000 (100% of then-current Initial Franchise Fee per BHC Restaurant) plus $3,500 non-refundable Transfer Review Fee |
| Transfer Conditions | Franchisor prior written consent required; transferee must meet franchisor qualifications; existing franchisee must be in full compliance; transferee executes then-current franchise agreement; training completed; transfer fees paid; release signed; MFA may not be assigned except to entity entirely owned by former multi-unit owner |
| Termination for Cause | 30 days to cure monetary and other curable defaults; immediate termination for non-curable defaults including bankruptcy, abandonment, material misrepresentation, repeated failures to comply, felony conviction, false books/records, imminent danger to public health or safety |
| Non-Compete Period | 2 years |
| Non-Compete Details | No competing business within 25 miles of franchisee's Master Franchised BHC Restaurant or any other Master Franchised BHC Restaurant or other retail location for 2 years after termination, cancellation, or expiration |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | At least one Principal Equity Operator, with or through the General Manager, must participate personally in the direct operation of the Master Franchise Business. Day-to-day operations must be managed by the franchisee or a full-time General Manager who has satisfactorily completed the franchisor's training program. |
| Required Suppliers | Franchisees must purchase all BHC Products exclusively from BHC USA LLC or its designated suppliers. Designated suppliers are the only source for equipment, gift cards, merchandising materials, sauce mix, inventory items, signage, Computer System (POS), and uniforms. |
| Supply Restrictions | All products offered at BHC Restaurants must be purchased solely from BHC or approved suppliers. Alternative suppliers must be submitted to BHC for written approval. Franchisees may not distribute, sell, or transfer any supplies to third parties. |
| Franchisor Revenue from Suppliers | None in 2024. BHC did not derive revenue, rebates, or other material consideration from required purchases or leases by franchisees in 2024. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | BHC USA LLC does not offer any direct or indirect financing in connection with a Master Franchise Business and does not guarantee notes, leases, or obligations. |
BHC USA(Master) Franchise Earnings — Item 19
BHC USA(Master) does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
BHC USA(Master) Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
BHC USA(Master) System Growth
BHC USA(Master) currently operates 1 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 0 |
| 2023 | 1 | 0 | 1 |
| 2024 | 2 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 4 states: CA, IN, VA, NY
Franchisor Financials (Item 21)
Audited by Chi & Nam LLP, Certified Public Accountants for year ending December 31.
BHC USA(Master) Franchise — FAQ
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