What is the dependency between providing notice and avoiding being deemed 'Abandoned' for a Bhc franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
"Abandoned" means cessation of operation of the Franchised Business for a period of five consecutive business days, without Franchisor's prior written consent. A repeated pattern of inactivity at Franchisee's Franchised BHC Restaurant for periods of less than five consecutive business days may result in the Franchised Business being deemed Abandoned by Franchisee if in Franchisor's judgment such inactivity adversely impacts the Franchised Business. However, Franchisee's Franchised BHC Restaurant will not be deemed Abandoned if the inactivity is due to natural disasters or other matters reasonably beyond Franchisee's control, provided that Franchisee gives Franchisor notice of any such closure within five business days after the initial occurrence of the event resulting in such inactivity, and Franchisee acknowledges in writing that such inactivity is due to one of the foregoing causes, and provided further that Franchisee re-establish the Franchised Business and be fully operational within 180 days after the initial occurrence of the event resulting in such inactivity, or such longer period as Franchisor may permit.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Bhc restaurant can be deemed 'Abandoned' if operations cease for five consecutive business days without prior written consent from Bhc. Even a repeated pattern of inactivity for less than five consecutive business days can lead to the franchise being considered 'Abandoned' if Bhc believes it negatively impacts the business.
However, there is an exception: if the inactivity is due to natural disasters or other events beyond the franchisee's control, the restaurant will not be deemed 'Abandoned'. To qualify for this exception, the franchisee must provide Bhc with notice of the closure within five business days after the event that caused the inactivity. The franchisee must also acknowledge in writing that the inactivity is due to one of these uncontrollable causes.
Furthermore, the franchisee must re-establish the Franchised Business and be fully operational within 180 days after the initial event, unless Bhc permits a longer period. Therefore, providing timely notice and written acknowledgment is crucial for a Bhc franchisee to avoid being deemed to have abandoned the franchise when the closure is due to circumstances outside their control. Failing to provide this notice within the specified timeframe could result in the franchise being classified as 'Abandoned', even if the cause of closure was legitimate.