Is the Bhc franchise agreement binding upon the Franchisor's successors and assigns?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the right to Transfer this Agreement and all of Franchisor's rights and privileges hereunder ("Assignment by Franchisor") to any other person, firm, or corporation ("Franchisor's Assignee"). Upon the effective date of the Assignment by Franchisor and thereafter, Franchisor will be relieved of all obligations or liabilities under this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchise agreement is transferable by Bhc. Bhc has the right to transfer the agreement, including all of its rights and privileges, to another entity or person, referred to as "Franchisor's Assignee."
Upon the effective date of this transfer, Bhc is relieved of all obligations and liabilities under the franchise agreement. This means that the new entity or person, "Franchisor's Assignee," assumes all responsibilities and obligations to the franchisee.
This clause ensures that Bhc can sell or transfer its franchise operations without disrupting the agreements with its franchisees. For a potential franchisee, this means the agreement they sign with Bhc could be managed by a different company during the term of the agreement.