What is the deadline for signing the Renewal Franchise Agreement for Bhc?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) As a condition to renewing Franchisee's rights, duties and obligations hereunder, not later than 90 days before the end of the term that is expiring, Franchisee and Franchisor must sign either (i) Franchisor's then-current standard Franchise Agreement modified by addendum to remove provisions that only apply to a new franchisee, such as initial franchise fee and initial training requirements ("Renewal Franchise Agreement") or (ii) an addendum to this Agreement extending its term for an additional 10 year term. IN ADDITION TO NOT GRANTING ANY ADDITIONAL RIGHTS BEYOND THOSE GRANTED IN THIS AGREEMENT, THE RENEWAL FRANCHISE AGREEMENT MAY CONTAIN OTHER TERMS THAT ARE SUBSTANTIALLY DIFFERENT FROM THOSE IN THIS AGREEMENT. The Renewal Franchise Agreement, when executed, will supersede this Agreement.
- (e) At the time of renewal, Franchisee must have satisfied all monetary obligations owed by Franchisee to Franchisor and to Franchisor's affiliates and all other material obligations under this Agreement, and Franchisor may examine Franchisee's books and records to verify compliance with this requirement anytime during normal business hours within 120 days of Franchisee's renewal date.
- (f) Before or not later than 90 days after Franchisee's execution of a Renewal Franchise Agreement for an additional term, Franchisee must make such physical modifications (i.e., remodel) to Franchisee's Franchised BHC Restaurant as are reasonably necessary so that they are substantially consistent with the then current Trade Dress or System requirements, and so that they can accommodate new BHC Products, if any. Franchisee must also bring Franchisee's Franchised BHC Restaurant and equipment, materials, and supplies into compliance with the standards then applicable to new BHC franchises.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a franchisee wants to renew their franchise agreement, they must sign the Renewal Franchise Agreement with Bhc no later than 90 days before the end of their current term. This agreement can either be Bhc's then-current standard Franchise Agreement (modified to remove elements that apply only to new franchisees) or an addendum that extends the current agreement for another 10-year term.
It is important to note that the Renewal Franchise Agreement may include terms that are substantially different from the original agreement. Once executed, the Renewal Franchise Agreement will replace the original agreement.
In addition to signing the renewal agreement in a timely manner, the franchisee must also meet other conditions to qualify for renewal. These include satisfying all outstanding financial obligations to Bhc and its affiliates, as well as fulfilling all other material obligations under the existing agreement. Bhc has the right to examine the franchisee's financial records within 120 days of the renewal date to ensure compliance. Furthermore, franchisees may be required to remodel their BHC Restaurant to meet current brand standards and accommodate any new BHC products before or within 90 days after signing the Renewal Franchise Agreement.