What is the deadline for Bhc to respond to a franchisee's notice of a proposed assignment?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Within 15 days after Franchisor's receipt of such notice (or if Franchisor requests additional information, within 10 days after receipt of such additional information), Franchisor may either (i) consent or withhold Franchisor's consent to such Assignment by Franchisee, in accordance with section 12.2 hereof, or (ii) at Franchisor's option, accept the Assignment by Franchisee itself or on behalf of Franchisor's nominee upon the terms and conditions specified in the notice.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc has a deadline to respond to a franchisee's notice of a proposed assignment. Specifically, Bhc has 15 days to respond after receiving the franchisee's notice. However, if Bhc requests additional information from the franchisee, the response deadline is adjusted to 10 days after receiving the additional information.
This means that a Bhc franchisee looking to assign their franchise agreement needs to be aware of these timelines. The franchisee must provide all the required information in the initial notice to ensure a timely response from Bhc. If Bhc asks for more information, the franchisee should provide it promptly to avoid delays in the assignment process.
This process is fairly standard in franchising, as franchisors typically want to carefully vet potential new franchisees to protect their brand and ensure the new operator meets their standards. The right of first refusal allows Bhc to control who enters their system, maintaining consistency and quality across all franchise locations.
It is important to note that these timelines are specifically tied to Bhc's right of first refusal. If Bhc decides not to exercise this right, the franchisee is then free to assign the agreement to their proposed assignee within a 60-day period, subject to the original terms and conditions. Any material changes to those terms would trigger Bhc's right of first refusal again, restarting the process.