What is the dependency between the franchisee providing information and Bhc's decision on the transfer?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Prior to any Assignment by Master Franchisee, Master Franchisee must notify Franchisor of Master Franchisee's intent to sell, transfer or assign the Franchise, all (or substantially all) the assets of the BHC Restaurant, or a controlling or non- controlling interest in Master Franchisee (if an entity). The notice must be in writing, delivered to Franchisor in accordance with section 16.1 hereof and include the following:
(i) the proposed transferee's name and address;
(ii) a copy of all agreements related to the sale, assignment, or transfer of the Franchise, the assets of the BHC Restaurant, or the controlling interest in Master Franchisee (if an entity); and
(iii) the proposed transferee's application for approval to become the successor Master Franchisee (this application must include all forms, financial disclosures and related information generally used by Franchisor when interviewing prospective new Master Franchisees, if Franchisor makes those forms available to Master Franchisee.
If the forms are not readily available, Master Franchisee must request that Franchisor deliver the forms to Master Franchisee by business courier in accordance with section 16.1 hereof within 15 calendar days).
As soon as practicable after the receipt of the proposed transferee's application, Franchisor will notify, in writing, Master Franchisee and the proposed transferee of any additional information or documentation necessary to complete the transfer application.
If Franchisor's then-existing standards for the approval of new or renewing Master Franchisees are not readily available to Master Franchisee when Master Franchisee notifies Franchisor of Master Franchisee's intent to sell, transfer, or assign the Franchise, all or substantially all of the assets of the BHC Restaurant, or a controlling or non-controlling interest in Master Franchisee (if an entity), Franchisor will co
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisee's ability to transfer their franchise is heavily dependent on providing Bhc with comprehensive information about the proposed transfer and transferee. Bhc requires notification of the intent to sell, transfer, or assign the franchise, assets, or controlling interest. This notification must be written and include the transferee's name and address, copies of all agreements related to the transfer, and the proposed transferee's application for approval. This application must contain all forms, financial disclosures, and related information that Bhc generally uses when interviewing new franchisees, if Bhc makes these forms available.
Bhc's review process is contingent on receiving this information. After receiving the transferee's application, Bhc will notify the franchisee and transferee of any additional information or documentation needed to complete the application. If Bhc's standards for approving new or renewing franchisees are not readily available, Bhc will communicate these standards to the franchisee within 15 calendar days of the notification of intent to transfer.
Bhc retains significant control over the transfer process to ensure that any new franchisee meets their standards. The level of detail required in the application process suggests that Bhc conducts a thorough review of potential transferees, similar to the vetting process for new franchisees. This protects the brand and the interests of other franchisees within the Bhc system. A prospective franchisee should be prepared to gather and submit all required documentation promptly to facilitate a smooth transfer process, and should clarify with Bhc what specific forms and standards will be applied to the transferee's application.