FranchiseVerdict
FV-00294·CAUTIONStandard76

Bhc Usa

Formerly known as BHC Chicken

OtherFranchising since 2022
Investment
$405K – $533K
82nd pct Other
Avg revenue
50th pct Other
Royalty
4.5%
6th pct Other
Units
3
20th pct Other
SBA default

Bottom line

  • Total investment $405K – $533K including a $40K franchise fee, 4.5% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 72/100.
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
BHC USA LLC
Parent company
Dining Brands Group Co, Ltd. (formerly known as BHC F&B Co., Ltd.)
Incorporated in
California
HQ
3435 Wilshire Blvd., Suite 460, Los Angeles, CA 90010
Auditor
CHI & NAM LLP
Audited financials
Franchisor revenue
$302K
vs $1.7M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one BHC USA unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $405K–$533K
Working capital
$
FDD reports $60K–$150K

Unlevered ROIC · per unit

21%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$120K
EBITDA margin
16.0%
Total invested
$574K
Payback
57 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

BHC USA operates a small franchise system with limited public information. Franchisees likely manage day-to-day operations within their protected territory, but specific operational details, service/product offerings, and business model remain unclear due to minimal disclosure.

CEO
David Hosup Song
Founded
2004
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$405K – $533K
All-in to open one unit
Liquid capital
$60K – $150K
Cash you must have on hand
Franchise fee
$40K
Royalty
4.5%
Percentage of Gross Revenue · typical 6–8%
Ad fund
2.5%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
3
Opened
2
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
2
Corporate units in the system
% franchised
33%
vs corporate-owned
2023
1+2
Franchised units
2024
0
Franchised units
2025
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 9 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 9 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

72
Risk · 0-100
CAUTION72 / 100

This is a microcap franchise with critical financial transparency gaps, going concern issues, and insufficient unit density to support franchisee success or system sustainability.

Score breakdown · what drove the 72 / 100 rating

  1. 01MINOROnly 3 units in system with unknown growth trajectory suggests minimal scale and viability
  2. 02MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and suggests weak unit economics
  3. 03HIGHGoing Concern = False indicates franchisor financial instability or restructuring risk
  4. 04MINORHigh initial investment ($405k-$533k) paired with tiny unit base creates outsized risk exposure
  5. 05MEDExtremely limited franchisee base (3 units) means minimal validation opportunities and peer support

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Development Area
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
California

Item 11

Training & Operations

Classroom training
36 hrs
On-the-job training
27 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

9 numbers

Locked
(517) 373-••••
MI
(701) 328-••••
NY
(317) 232-••••
IN

One-time purchase · CSV download · Validation questions included