What documents must be signed to renew a Bhc Master Franchise Agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) As a condition to renewing Master Franchisee's rights, duties and obligations hereunder, not later than 90 days before the end of the term that is expiring, Master 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 Master 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.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, to renew a Master Franchise Agreement, both the Master Franchisee and Bhc must sign specific documents. No later than 90 days before the end of the current term, they must sign either Bhc's then-current standard Franchise Agreement, modified by an addendum to remove provisions that apply only to new Master Franchisees (such as initial franchise fees and training), or an addendum to the existing agreement that extends the term for an an additional 10 years.
The Renewal Franchise Agreement may contain terms substantially different from the original agreement, but it will supersede the original agreement once executed. This means that franchisees need to carefully review the renewal agreement to understand any changes in their obligations or Bhc's rights.
In addition to signing the renewal documents, the Master Franchisee must meet other conditions to be eligible for renewal. These include being solvent, not having abandoned the BHC Restaurant, operating the franchise in a way that doesn't endanger public health or harm the Bhc brand, and not having knowingly submitted false reports to Bhc during the expiring term. The Master Franchisee must also have satisfied all monetary and material obligations to Bhc and its affiliates. Furthermore, the Master Franchisee may need to make physical modifications to the restaurant to comply with current trade dress and system requirements.