What factors does Bhc consider when determining if a Bhc Restaurant is substantially inconsistent with System-wide standards?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Franchisee will always be required to make upgrades and refurbishments to the Franchised BHC Restaurant before renewing the Franchise pursuant to section 5.2(f) of this Agreement. Otherwise, Franchisor will only require the types of modifications and expenditures described in sections 8.5(a) and 8.5(b) if Franchisor makes a good faith determination that the Franchised BHC Restaurant is substantially inconsistent with prevailing System-wide standards (including the Trade Dress, safety issues regarding customers and employees, the overall condition of the Franchised BHC Restaurant, or the type, quality or condition of the equipment needed to adequately prepare, promote and sell BHC Products) and that, as a result of its appearance or condition, the Franchised BHC Restaurant is either (i) not adequately positioned to promote and sell BHC Products as then required or (ii) damaging the integrity of the BHC image, brand or Marks.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the company considers several factors when determining if a Bhc Restaurant is substantially inconsistent with System-wide standards. These factors include the Trade Dress, safety issues regarding customers and employees, the overall condition of the restaurant, and the type, quality, or condition of the equipment needed to adequately prepare, promote, and sell Bhc Products. Bhc makes a good faith determination based on these factors.
If Bhc determines that a restaurant is substantially inconsistent with System-wide standards, and that the restaurant's appearance or condition is either not adequately positioned to promote and sell Bhc Products as required, or is damaging the integrity of the Bhc image, brand, or Marks, then Bhc may require modifications and expenditures to bring the restaurant up to standard. These modifications and expenditures are generally of the types described in sections 8.5(a) and 8.5(b) of the franchise agreement.
This means that as a prospective franchisee, it is important to maintain the standards set by Bhc to avoid being required to make potentially costly upgrades or modifications. It also highlights the importance of understanding and adhering to the brand's standards for Trade Dress, safety, and equipment maintenance. Franchisees should also be aware that upgrades and refurbishments are always required before renewing the franchise agreement.