Can Bhc assist the Master Franchisee in locating or evaluating a site, and if so, is there a fee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor does not locate sites for Master Franchisee. However, Franchisor may, without, obligation, assist Master Franchisee in locating or evaluating a site for a reasonable fee.
If Master Franchisee has not located a site for the Franchised BHC Restaurant that is acceptable to Franchisor within four (4) months after the Effective Date, Franchisor may cancel this Agreement on the basis of Master Franchisee's failing to find an acceptable site.
- (c) Franchisor may, but is not obligated to, assist Master Franchisee in the site selection process.
However, Franchisor reserves the sole right of final review and consent to any location of the Franchised BHC Restaurant.
Franchisor uses available demographic information to evaluate the site and the area in which it is located, and analyze area income figures, traffic patterns, visibility, population density, competition, zoning, parking, accessibility, and other related, relevant circumstances.
- (d) Franchisor will provide Master Franchisee with a sample prototype layout for the Franchised BHC Restaurant.
Franchisor will provide Master Franchisee a floor plan and Master Franchisee must pay Franchisor for all costs and expenses that Franchisor incurs in providing the site design review of $2,500 ("Site Design Review Fee") and site review fee of $2,000 to $4,000 ("Site Review Fee").
- (g) Unless otherwise agreed to in writing by Master Franchisee and Franchisor, Master Franchisee has the sole responsibility for locating, securing, and obtaining suitable premises for the Franchised BHC Restaurant.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc may assist the Master Franchisee in locating or evaluating a site. However, Bhc is not obligated to do so. The Master Franchisee is generally responsible for locating, securing, and obtaining suitable premises for the Franchised Bhc Restaurant. Bhc reserves the right of final review and consent to any location.
For any site that Bhc reviews, the Master Franchisee must reimburse Bhc for all costs and expenses that Bhc incurs in reviewing the site. Bhc uses available demographic information to evaluate the site and the area in which it is located, and analyze area income figures, traffic patterns, visibility, population density, competition, zoning, parking, accessibility, and other related, relevant circumstances.
Bhc also charges a $2,500 Site Design Review Fee and a $2,000 to $4,000 Site Review Fee. The Master Franchisee is responsible for employing architects, designers, or engineers to adapt the sample plans and specifications for the Franchised Bhc Restaurant. Bhc does not locate sites for Master Franchisee. However, Bhc may, without obligation, assist Master Franchisee in locating or evaluating a site for a reasonable fee.
If the Master Franchisee has not located a site for the Franchised Bhc Restaurant that is acceptable to Bhc within four months after the Effective Date, Bhc may cancel the Franchise Agreement based on the Master Franchisee's failure to find an acceptable site.