Bhc Usa Franchise Cost, Revenue & Review 2026
Formerly known as BHC Chicken
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
BHC USA is a Korean fried chicken restaurant franchise, offered as a master franchise for developing BHC Chicken restaurants. Master franchisees develop territories and support unit restaurants that serve Korean-style fried chicken.
FranchiseVerdict summary · 2026
A BHC USA franchise requires a total initial investment of $405K – $553K, including a $40K franchise fee and an ongoing 4.5% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $405K – $553K
- 66th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.5%
- 10th pct Service Resta…
- Units
- 3
- 15th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $405K – $553K including a $40K franchise fee, 4.5% ongoing royalty.
- RETURNSAudited consolidated total revenue for year ended December 31, 2024 (BHC USA LLC and Subsidiaries): company-operated restaurant revenue $1,314,783, merchandise sales $317,317, franchise revenue $35,433, royalty $39,249, franchise service fees $7,157. Net loss of $(1,529,745). other_revenue reflects merchandise sales.
- RISKVerdict C (Average), verdict score 40/100 (higher is better).
- FLAGAuditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BHC USA LLC
- Parent company
- Dining Brands Group Co, Ltd. (formerly BHC F&B Co., Ltd.)
- Ultimate parent
- Dining Brands Group Co, Ltd.
- CEO title
- Chief Executive Officer
- David Hosup Song
- Incorporated in
- CA
- HQ
- 3435 Wilshire Blvd., Suite 460, Los Angeles, CA 90010
- Auditor
- CHI & NAM LLP
- Audited financials
- Franchisor revenue
- $1.7M
- vs $1.7M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
- CEO
- David Hosup Song
- Headquarters
- CA
- Founded
- 2004
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 27% below the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| MF Development Feenot refundable | $200K | $200K | |
| Initial Deposit | $100K | $100K | |
| Office Equipment and Supplies | $0 | $5K | |
| Business Office | $0 | $15K | |
| Storage and Product Delivery Expenses | $0 | $5K | |
| Initial Training Feenot refundable | $8K | $8K | |
| Opening Inventory and Supplies, Uniforms for First Affiliate Franchised BHC Restaurant | $0 | $20K | |
| Insurance | $7K | $10K | |
| Utility Deposit, Business Licenses | $5K | $10K | |
| Professional Fees | $5K | $10K | |
| Additional Funds - 3 months | $60K | $150K | |
| Total initial investment | $385K | $533K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $405K – $553K
- Middle of category vs category
- Liquid capital req'd
- $60K – $150K
- Bottom third — review vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 4.5%
- percentage · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.5% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Training fee | $8K |
| Transfer fee | $40K |
| Renewal fee | $40K |
| Inventory (initial) | $0 – $20K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
BHC USA did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one BHC USA unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
19%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Audited consolidated total revenue for year ended December 31, 2024 (BHC USA LLC and Subsidiaries): company-operated restaurant revenue $1,314,783, merchandise sales $317,317, franchise revenue $35,433, royalty $39,249, franchise service fees $7,157. Net loss of $(1,529,745). other_revenue reflects merchandise sales.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Quick-Service Restaurants average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Bhc Usa Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 4
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
This is a microcap franchise with critical financial transparency gaps, going concern issues, and insufficient unit density to support franchisee success or system sustainability.
Litigation (Item 3)
No litigation required to be disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CHI & NAM LLPⓘ Going-concern language present, but this is an early-stage franchisor with limited operating history — common for new systems and not necessarily a sign of distress.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 01MINOROnly 3 units in system with unknown growth trajectory suggests minimal scale and viability
- 02MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and suggests weak unit economics
- 03HIGHGoing Concern = False indicates franchisor financial instability or restructuring risk
- 04MEDExtremely limited franchisee base (3 units) means minimal validation opportunities and peer support
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles County, California |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 36 hrs
- On-the-job training
- 27 hrs
- Training location
- Franchisor Facility and Franchised BHC Restaurant
- Ongoing training
- Optional
- Field support
- 27 hrs/yr
- On-site visits per year
- Time to open
- 14 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BHC USA franchise?
The total investment to open a BHC USA franchise ranges from $405K – $553K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do BHC USA franchise owners earn?
BHC USA does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the BHC USA FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the BHC USA FDD and qualifies whose outlets they describe.
What is BHC USA's franchise failure rate?
SBA 7(a) loan charge-off data is not available for BHC USA (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many BHC USA franchise locations are there?
As of their most recent FDD filing, BHC USA has 3 total units in the United States, including 1 franchised units and 2 company-owned units. 1 new units were opened in the latest reporting year.
Is BHC USA a good franchise to buy?
FranchiseVerdict rates BHC USA as a C-grade franchise with a verdict score of 40 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent BHC USA, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.