In the event of a transfer of the Master Franchisee's rights, duties, and obligations under the Bhc agreement, what training is required for the transferee's key personnel?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) In the event of a Transfer of Master Franchisee's rights, duties, and obligations under this Agreement (which must be done in full compliance with section 12.2 of this Agreement), the transferee's key personnel must be trained by Franchisor as a condition of Franchisor's consent to such Transfer. The transferred BHC Restaurant may not be operated by the transferee until Franchisor accepts the transferee in writing as being qualified to operate the BHC Restaurant and the Franchised Business and Franchisor has otherwise consented to the Transfer in accordance with this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a Master Franchisee's rights, duties, and obligations are transferred under the agreement, the transferee's key personnel must be trained by Bhc as a condition for Bhc's consent to the transfer. The transferee cannot operate the BHC Restaurant until Bhc accepts them in writing as qualified to operate the restaurant and the franchised business, and Bhc has consented to the transfer.
This requirement ensures that the new management team is competent and capable of maintaining Bhc's standards and operating procedures. It protects Bhc's brand reputation and the interests of other franchisees by ensuring that all locations are run effectively.
For a prospective franchisee, this means that if they plan to transfer their franchise in the future, the individuals taking over the business will need to undergo training approved by Bhc. This could involve costs for the transferee related to travel, lodging, and training fees. The transferee will also need to demonstrate their competence to Bhc before being allowed to operate the franchise.