What application is required from the proposed transferee to become a successor Master Franchisee for a Bhc franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a Master Franchisee intends to sell, transfer, or assign their franchise, the proposed transferee must submit an application for approval to become the successor Master Franchisee. This application needs to include all forms, financial disclosures, and related information that Bhc generally uses when interviewing prospective new Master Franchisees, assuming Bhc makes these forms available to the current Master Franchisee. If these forms are not readily available, the Master Franchisee must request that Bhc deliver them via business courier within 15 calendar days.
After receiving the proposed transferee's application, Bhc will notify both the Master Franchisee and the proposed transferee in writing if any additional information or documentation is needed to complete the application. Additionally, if Bhc's standards for approving new or renewing Master Franchisees are not easily accessible to the Master Franchisee when they notify Bhc of their intent to transfer the franchise, Bhc will communicate these standards to the Master Franchisee within 15 calendar days.
This process ensures that any potential new Master Franchisee meets Bhc's standards and is fully vetted before taking over the franchise. It also protects Bhc's interests by maintaining control over who operates under their brand. The 15-day requirement for providing forms and standards ensures the transfer process is not unduly delayed, while the inclusion of financial disclosures is a standard practice in franchising to assess the transferee's financial capability.