What must a Bhc franchisee do before assigning their franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's consent to a specific Assignment by Franchisee is not cumulative and will not apply to any subsequent assignments, in respect of each of which Franchisee must comply with this section 12.2.
- (b) Prior to any Assignment by Franchisee, Franchisee must notify Franchisor of Franchisee's intent to sell, transfer or assign the Franchise, all (or substantially all) the assets of the Franchised BHC Restaurant, or a controlling or non- controlling interest in 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;
(ii) a copy of all agreements related to the sale, assignment, or transfer of the Franchise, the assets of the Franchised BHC Restaurant, or the controlling interest in Franchisee (if an entity); and
(iii) the proposed transferee's application for approval to become the successor franchisee (this application must include all forms, financial disclosures and related information generally used by Franchisor when interviewing prospective new franchisees, if Franchisor makes those forms available to Franchisee.
If the forms are not readily available, Franchisee must request that Franchisor deliver the forms to Franchisee by business courier in accordance with section 16.1 hereof within 15 calendar days).
As soon as practicable after the receipt of the proposed transferee's application, Franchisor will notify, in writing, Franchisee and the proposed transferee of any additional information or documentation necessary to complete the transfer application.
If Franchisor's then-existing standards for the approval of new or renewing franchisees are not readily available to Franchisee when Franchisee notifies Franchisor of Franchisee's intent to sell, transfer, or assign the Franchise, all or substantially all of the assets of the Franchised BHC Restaurant, or a controlling or non-controlling interest in Franchisee (if an entity), Franchisor will communicate the standards to Franchisee within 15 calendar days.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must take specific steps before assigning their franchise. The franchisee must first notify Bhc of their intent to sell, transfer, or assign the franchise. This notification must be in writing and delivered to Bhc as specified in section 16.1 of the agreement. The notification should include the proposed transferee's name and address, a copy of all agreements related to the sale, assignment, or transfer, and the proposed transferee's application for approval to become the successor franchisee. This application should include all forms, financial disclosures, and related information generally used by Bhc when interviewing prospective new franchisees, if Bhc makes those forms available to the franchisee.
If Bhc's forms are not readily available, the franchisee must request that Bhc deliver the forms via business courier within 15 calendar days. After receiving the proposed transferee's application, Bhc will notify the franchisee and the proposed transferee, in writing, of any additional information or documentation needed to complete the transfer application. If Bhc's standards for approving new or renewing franchisees are not readily available to the franchisee when they notify Bhc of their intent to sell, transfer, or assign the franchise, Bhc will communicate these standards to the franchisee within 15 calendar days.
It is important to note that Bhc's consent to a specific assignment is not cumulative and does not apply to any subsequent assignments. For each assignment, the franchisee must comply with these requirements. Any attempt to assign the franchise in violation of these terms is void and constitutes a material breach of the agreement, potentially leading to immediate termination of the agreement and conferring no rights or interest to any other party. Upon Bhc's consent to any assignment, the franchisee must bring all accounts with Bhc current and transfer all service agreements or contracts signed by customers to the assignee. The franchisee must also execute an agreement among themselves, Bhc, and the assignee, which will include a mutual release between the franchisee and Bhc, and enter into an assignment of the lease for the restaurant premises, including an assignment of rights, title, and interest to telephone numbers and utilities.