What events are considered reasonably beyond a Bhc franchisee's control, exempting them from being deemed 'Abandoned'?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
as defined in Article 1 below) and goodwill to conduct the "Franchised Business" (as defined in Article 1 below) at a specific "Franchised BHC Restaurant" (as defined in Article 1 below and identified in Exhibit 1 attached) operated by Franchisee.
- C. Franchisor is willing to grant Franchisee a "Franchise" (as defined in section 3.1 hereof), in accordance with the provisions of this Agreement and the Operations Manual.
1. DEFINITIONS
"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 a
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee's restaurant will not be considered 'Abandoned' if its inactivity is due to natural disasters or other matters reasonably beyond the franchisee's control.
However, to qualify for this exemption, the franchisee must notify Bhc of the closure within five business days of the event and acknowledge in writing that the inactivity is due to such causes. Furthermore, the franchisee must re-establish the Franchised Business and be fully operational within 180 days after the event's initial occurrence, unless Bhc permits a longer period.
This clause protects franchisees from being penalized for temporary closures caused by unforeseen circumstances, but it also places specific obligations on them to communicate promptly with Bhc and to resume operations as quickly as possible. Franchisees should be aware of these requirements to avoid being in breach of their franchise agreement.