Is a Bhc franchisee always required to make upgrades and refurbishments to the Franchised Bhc Restaurant before renewing the franchise agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
upgrades to equipment and any technology used in Franchised BHC Restaurant that Franchisor may require.
- (b) Franchisor may periodically require Franchisee to update the Trade Dress used at the Franchised BHC Restaurant. Such updates will be contained in the Operations Manual or otherwise provided to Franchisee in writing. Such updates may require Franchisee to install new color schemes, logos, signage, or other visual elements. Franchisor anticipates that such Trade Dress updates will be required no more frequently than once every five years.
- (c) Franchisee will always be required to make upgrades and refurbishments to the Franchised BHC Restaurant before renewing the Franchise pursuant to section 5.2(f) of this Agreement. Otherwise, Franchisor will only require the types of modifications and expenditures described in sections 8.5(a) and 8.5(b) if Franchisor makes a good faith determination that the Franchised BHC Restaurant is substantially inconsistent with prevailing System-wide standards (including the Trade Dress, safety issues regarding customers and employees, the overall condition of the Franchised BHC Restaurant, or the type, quality or condition of the equipment needed to adequately prepare, promote and sell BHC Products) and that, as a result of its appearance or condition, the Franchised BHC Restaurant is either (i) not adequately positioned to promote and sell BHC Products as then required or (ii) damaging the integrity of the BHC image, brand or Marks.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees are required to make upgrades and refurbishments to their franchised restaurant before renewing their franchise agreement. Specifically, before or no later than 90 days after executing a Renewal Franchise Agreement, the franchisee must make physical modifications (i.e., remodel) to ensure the restaurant is substantially consistent with the current Trade Dress or System requirements. These modifications should also accommodate any new Bhc Products.
In addition to the physical modifications, the franchisee must also bring the restaurant, equipment, materials, and supplies into compliance with the standards applicable to new Bhc franchises at the time of renewal. This ensures that all renewed franchises meet the current standards of the Bhc system.
These requirements are conditions for renewing the franchise. The franchisee must also sign either Bhc's then-current standard Franchise Agreement modified by addendum to remove provisions that only apply to a new franchisee or an addendum to the existing agreement extending its term for an additional 10 years. The franchisee must also satisfy all monetary and material obligations under the existing agreement. Furthermore, the franchisee must pay a Renewal Fee of $40,000 when signing the Renewal Franchise Agreement.