Can the Bhc franchise agreement be modified by oral agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor must approve in writing any and all changes in the Franchised BHC Restaurant plans prior to leasehold improvement of the Franchised BHC Restaurant or the implementation of such changes.
- (g) Unless otherwise agreed to in writing by Franchisee and Franchisor, Franchisee has the sole responsibility for locating, securing, and obtaining suitable premises for Franchisee's Franchised BHC Restaurant.
Any waiver, extension of time or other indulgence granted by Franchisor or its agents, successors, or assigns, related to the Franchise Agreement or any other agreement(s) by and between Franchisee and Franchisor, will not modify or amend this Guarantee, which will be continuing, absolute, unconditional, and irrevocable.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
Based on the 2025 FDD, the Bhc franchise agreement generally requires written consent for modifications, particularly concerning changes to restaurant plans. Specifically, any alterations to the Franchised BHC Restaurant plans must receive written approval from Bhc before implementation. This requirement aims to ensure that all changes align with Bhc's standards and protect the brand's uniformity.
However, the FDD also indicates that unless otherwise agreed to in writing by both the franchisee and Bhc, the franchisee is solely responsible for securing suitable premises for their Franchised BHC Restaurant. This suggests that while the initial site selection is the franchisee's responsibility, any modifications to the restaurant's plans necessitate written approval from Bhc. This dual requirement ensures franchisee autonomy in site selection while maintaining brand consistency through controlled modifications.
Furthermore, the guarantee section of the franchise agreement states that any waiver, extension of time, or other indulgence granted by Bhc related to the Franchise Agreement must be in writing and will not modify or amend the guarantee if not documented. This clause reinforces the importance of written agreements and modifications, ensuring that all parties are aligned and that changes are formally recorded to avoid disputes. Therefore, while certain aspects of the franchise agreement might allow for some flexibility, modifications generally require written consent from Bhc to be valid and enforceable.