What is the deadline for Bhc to respond to a franchisee's notice of a proposed assignment if additional information is requested?
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 15 days to respond to a franchisee's notice of a proposed assignment. However, if Bhc requests additional information from the franchisee, the response deadline is extended to 10 days after Bhc receives the requested additional information. This response may be either to consent to the assignment, withhold consent, or exercise its right to accept the assignment itself.
This means that if you, as a Bhc franchisee, decide to sell your franchise, you must notify Bhc of the proposed sale, including all terms and conditions of the offer and information about the potential buyer. Bhc then has a limited time to review the proposed sale and make a decision. If Bhc needs more information to evaluate the potential buyer or the terms of the sale, it can request it from you, which extends the time Bhc has to respond.
It is important to provide all requested information promptly to avoid delays in the assignment process. If Bhc does not exercise its right of first refusal and consents to the assignment, you are then free to proceed with the sale to the proposed buyer within a 60-day period, provided the terms of the sale remain materially unchanged. Any material changes to the terms or the expiration of the 60-day period would trigger Bhc's right of first refusal again, requiring a new notice and review period.