What agreements must be provided to the Franchisor when a Bhc Master Franchisee intends to assign the franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
provided for in section 12.3 hereof, and transfer to an Affiliated Entity provided for in section 12.6 hereof. Franchisor's consent to a specific Assignment by Master Franchisee is not cumulative and will not apply to any subsequent assignments, in respect of each of which Master Franchisee must comply with this section 12.2.
(b) Prior to any Assignment by Master Franchisee, Master Franchisee must notify Franchisor of Master Franchisee's intent to sell, transfer or assign the Franchise, all (or substantially all) the assets of the BHC Restaurant, or a controlling or non- controlling interest in Master Franchisee (if an entity). The notice must be in writing, delivered to Franchisor in accordance with section 16.1 hereof and include the following:
(i) the proposed transferee's name and address;
(ii) a copy of all agreements related to the sale, assignment, or transfer of the Franchise, the assets of the BHC Restaurant, or the controlling interest in Master Franchisee (if an entity); and
(iii) the proposed transferee's application for approval to become the successor Master Franchisee (this application must include all forms, financial disclosures and related information generally used by Franchisor when interviewing prospective new Master Franchisees, if Franchisor makes those forms available to Master Franchisee. If the forms are not readily available, Master Franchisee must request that Franchisor deliver the forms to Master Franchisee by business courier in accordance with section 16.1 hereof within 15 calendar days).
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must provide specific agreements to Bhc when seeking to assign their franchise. Prior to any assignment, the Master Franchisee must inform Bhc in writing of their intent to sell, transfer, or assign the franchise, assets of the Bhc Restaurant, or a controlling interest in the Master Franchisee entity.
The required agreements include a copy of all agreements related to the sale, assignment, or transfer of the franchise, the assets of the Bhc Restaurant, or the controlling interest in the Master Franchisee. Additionally, the Master Franchisee must provide the proposed transferee's application for approval to become the successor Master Franchisee. This application should encompass all forms, financial disclosures, and related information typically used by Bhc when assessing new Master Franchisees, if Bhc makes these forms available.
Furthermore, upon Bhc's consent to the assignment, the Master Franchisee is obligated to execute an agreement among themselves, Bhc, and the assignee. This agreement formalizes the assignment and includes a mutual release between the Master Franchisee and Bhc. The Master Franchisee must also enter into an assignment of the lease for the Bhc Restaurant premises, which includes transferring all rights, title, and interest to telephone numbers and utilities related to the restaurant to the assignee. Failure to comply with these requirements could result in a breach of the agreement and potential termination of the franchise.