What action is prohibited that would prevent a Bhc Master Franchisee from renewing their franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Notwithstanding section 5.2(a) above, Franchisor is not obligated to renew Master Franchisee's rights granted under this Agreement for an additional term if one or more of the following applies or occurs:
(i) Master Franchisee gives Franchisor written notice of Master Franchisee's intention not to renew this Agreement at least 120 days before the expiration of the initial term or any successor term;
(ii) Termination of this Agreement would be permitted pursuant to sections 13.1 or 13.2 hereof;
(iii) Master Franchisee and Franchisor agree not to renew the Franchise;
(iv) Franchisor withdraws from distributing its products or services through Franchises in the geographic market served by Master Franchisee.
(v) At the time of renewal, Master Franchisee or any Principal Equity Operator has been convicted of a felony or a crime involving moral turpitude, consumer fraud or any other offense that is reasonably likely, in Franchisor's judgment, to have a materially adverse effect on the Marks, the System, or the goodwill associated with the Marks or System; or
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, there are several actions that would prevent a Master Franchisee from renewing their franchise agreement. Bhc is not obligated to renew the Master Franchisee's rights if the Master Franchisee provides written notice of their intention not to renew the agreement at least 120 days before the expiration of the current term.
Additionally, Bhc can deny renewal if termination of the agreement would be permitted under sections 13.1 or 13.2 of the agreement. Renewal is also not possible if both the Master Franchisee and Bhc mutually agree not to renew the franchise. Furthermore, Bhc will not renew the agreement if the franchisor withdraws from distributing its products or services through franchises in the geographic market served by the Master Franchisee.
Finally, Bhc will not renew if, at the time of renewal, the Master Franchisee or any Principal Equity Operator has been convicted of a felony or a crime involving moral turpitude, consumer fraud, or any other offense that is reasonably likely to have a materially adverse effect on the Marks, the System, or the goodwill associated with the Marks or System. These stipulations are fairly standard in franchising, as franchisors typically want to protect their brand and maintain quality control by setting conditions for renewal.