What financial information regarding assets and liabilities is Bhc requiring the franchisee to provide in this section of the agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
provided for in section 12.3 hereof, and transfer to an Affiliated Entity provided for in section 12.6 hereof. Franchisor's consent to a specific Assignment by Master Franchisee is not cumulative and will not apply to any subsequent assignments, in respect of each of which Master Franchisee must comply with this section 12.2.
(b) Prior to any Assignment by Master Franchisee, Master Franchisee must notify Franchisor of Master Franchisee's intent to sell, transfer or assign the Franchise, all (or substantially all) the assets of the BHC Restaurant, or a controlling or non- controlling interest in Master Franchisee (if an entity). The notice must be in writing, delivered to Franchisor in accordance with section 16.1 hereof and include the following:
(i) the proposed transferee's name and address;
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
Based on the 2025 FDD, Bhc requires a prospective franchisee who intends to sell, transfer, or assign their franchise to provide the proposed transferee's application for approval. This application must include all forms, financial disclosures, and related information generally used by Bhc when interviewing prospective new master franchisees, if Bhc makes those forms available to the master franchisee.
This requirement ensures that any potential new franchisee meets Bhc's financial standards and has the capacity to manage the franchise effectively. By requesting financial disclosures, Bhc aims to maintain the brand's integrity and protect the interests of other franchisees within the system.
For a prospective franchisee, this means they need to be prepared to gather and submit comprehensive financial documentation from any potential buyer. This process can be time-consuming and may require the assistance of financial professionals. It is crucial for franchisees to understand these requirements to ensure a smooth and compliant transfer of their franchise.