Who has the final right of review and consent to any location of the Franchised Bhc Restaurant?

According to Bhc's 2025 Franchise Disclosure Document, Bhc reserves the sole right of final review and consent to any location of the Franchised Bhc Restaurant. While Bhc may assist the franchisee in the site selection process, the final decision rests with Bhc. Bhc uses available demographic information to evaluate the site, analyzing factors such as area income, traffic patterns, visibility, population density, competition, zoning, parking, accessibility, and other relevant circumstances.

This consent from Bhc does not guarantee the success of the Bhc business at that location. The franchisee is responsible for locating and securing suitable premises, but Bhc has the final say in whether the location is approved. If a franchisee secures a location but does not commence operations within fourteen months after the effective date of the agreement, Bhc may terminate the agreement.

For Master Franchisees, premises acceptable to Bhc where the Master Franchised Bhc Restaurant will be operated must be located and secured by the Master Franchisee and reviewed and consented to by Bhc within four months after the Effective Date. If Bhc does not approve the proposed site within 30 days after the Master Franchisee's complete submission of the requested information (or 15 days after the Master Franchisee provides any supplemental information Bhc requests), the site will be deemed rejected. If the Master Franchisee has not located a site for the Franchised Bhc Restaurant that is acceptable to Bhc within four months after the Effective Date, Bhc may cancel this Agreement on the basis of Master Franchisee's failing to find an acceptable site.

This process highlights the importance of thorough due diligence in site selection. While Bhc provides guidance and final approval, the franchisee bears the initial responsibility for finding a viable location. The franchisee also pays Bhc a site design review fee of $2,500 and a separate site review fee of $2,000 to $4,000. Prospective franchisees should carefully consider these factors and the potential for termination if a suitable site is not secured in a timely manner.