When must the Bhc franchisee commence operation of the Franchised Business at their restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor within four (4) months after the Effective Date, Franchisor may cancel this Agreement on the basis of Franchisee's failing to find an acceptable site.
- (b) Franchisee must build out Franchisee's Franchised BHC Restaurant (and commence operation of the Franchised Business there) within ten (10) months after Franchisor approves the Franchised BHC Restaurant premises, using architects, project managers, contractors, subcontractors, architectural plans, and key equipment suppliers reasonably acceptable to Franchisor. Franchisee must commence operation of the Franchised Business at Franchisee's Franchised BHC Restaurant as soon as practicable after Franchisee's receipt of a certificate of occupancy (or equivalent document) from the responsible local government authority.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must commence operation of their Franchised Bhc Restaurant as soon as practicable after receiving a certificate of occupancy (or equivalent document) from the responsible local government authority. This means the franchisee needs to be ready to open for business shortly after the local government approves the building for occupancy.
Bhc also stipulates a timeframe for building out the restaurant. Franchisees must build out their Franchised Bhc Restaurant and commence business operations within ten months after Bhc approves the restaurant premises. This build-out must utilize architects, project managers, contractors, subcontractors, architectural plans, and key equipment suppliers reasonably acceptable to Bhc.
Furthermore, if a franchisee has not commenced operations within fourteen months after the effective date of the Franchise Agreement, Bhc reserves the right to terminate the agreement with written notice. This clause underscores the importance of adhering to the timelines set forth by Bhc and proactively managing the site selection, build-out, and opening processes.