How will Bhc deliver the notice of approval or disapproval of the proposed assignment to the franchisee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
As soon as practicable after the receipt of the proposed transferee's application, Franchisor will notify, in writing, Franchisee and the proposed transferee of any additional information or documentation necessary to complete the transfer application.
If the proposed sale, assignment, or transfer is disapproved, Franchisor shall include in the notice of disapproval a statement setting forth the reasons for the disapproval.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a franchisee seeks to sell, transfer, or assign their franchise, Bhc will communicate its decision regarding the proposed transfer in writing. Specifically, after receiving the proposed transferee's application, Bhc will provide written notification to both the franchisee and the proposed transferee regarding any additional information or documentation required to complete the transfer application.
If Bhc disapproves of the proposed sale, assignment, or transfer, the notification of disapproval must include a statement outlining the reasons for the decision. This ensures the franchisee understands the basis for the disapproval and has the opportunity to address any concerns, if possible.
This process is fairly standard in franchising, as franchisors typically retain the right to approve franchise transfers to ensure that new franchisees meet their operational and financial standards. The written notification requirement provides a clear record of communication and the reasons behind Bhc's decision, which is beneficial for both parties involved in the transfer process.