What is the Force Majeure exception for Bhc franchise operation hours?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
-(d) Franchisee's Franchised BHC Restaurant must be open on a full-time basis in accordance with the hours of operation as designated by Franchisor.
The obligation to remain open will not apply if Franchisee experiences a Force Majeure.
"Force Majeure." means a natural disaster (such as tornado, earthquake, hurricane, flood, fire or other natural catastrophe); strike, lockout or other industrial disturbance; war, terrorist act, riot, or other civil disturbance; epidemic; pandemic (e.g., COVID-19), or other similar force which Franchisee could not by the exercise of reasonable diligence have avoided; provided however, neither an act or failure to act by any federal, state, county, municipal and local governmental and quasi-governmental agency, commission or authority, nor the performance, non- performance or exercise of rights under any agreement with Franchisee by any lender, landlord, or other person will be a Force Majeure, except to the extent such act, failure to act, performance, non-performance or exercise of rights results from an act which is otherwise a Force Majeure. To avoid any potential misunderstanding, Franchisee's financial inability to perform or insolvency will not be a Force Majeure.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees are generally required to maintain full-time hours of operation as designated by Bhc. However, this obligation to remain open is waived if the franchisee experiences a Force Majeure event.
The FDD defines "Force Majeure" as events outside the franchisee's control that prevent them from fulfilling their contractual obligations. These events include natural disasters like tornadoes, earthquakes, hurricanes, floods, and fires, as well as strikes, lockouts, industrial disturbances, war, terrorist acts, riots, civil disturbances, epidemics, and pandemics such as COVID-19. The event must be one that the franchisee could not have avoided by exercising reasonable diligence.
It's important to note that certain events are specifically excluded from being considered a Force Majeure. These exclusions include actions or failures to act by governmental agencies, as well as the performance or non-performance of rights by lenders, landlords, or other persons under agreements with the franchisee, unless these actions result from an event that would otherwise qualify as a Force Majeure. Additionally, a franchisee's financial inability to perform or insolvency is explicitly excluded from being considered a Force Majeure event.