What must a franchisee do prior to an Affiliate Franchisee or Subfranchisee committing to lease or purchase potential premises for a Bhc restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, prior to the commitment of your Affiliate Franchisee or one of your Subfranchisees to lease or purchase the potential premises for the development and operation of a Master Franchise BHC Restaurant within the Territory, you must conduct an approval process to confirm that the potential premises meets all of our then-current minimum requirements for the premises of new BHC Restaurants, as the same may be amended, replaced or supplemented by us from time to time. We also reserve the right to approve any or all potential premises for the development and operation of BHC Restaurants. To the extent we exercise our approval right, you must provide to us any preliminary document, proposal, plan, report, accounts and other information as we may require relating to the potential premises.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, before an Affiliate Franchisee or Subfranchisee commits to leasing or purchasing potential premises for a Bhc restaurant, the franchisee must conduct an approval process. This process is to confirm that the potential premises meet Bhc's then-current minimum requirements for new restaurant locations, which Bhc may amend or supplement over time.
Bhc also retains the right to approve any or all potential premises for the development and operation of Bhc restaurants. If Bhc exercises this approval right, the franchisee must provide any preliminary documents, proposals, plans, reports, accounts, and other information related to the potential premises that Bhc may require.
This requirement ensures that all Bhc restaurant locations meet the brand's standards and have the best chance of success. It also gives Bhc control over the locations of its restaurants, which can help to protect the brand's image and reputation. A prospective franchisee should be aware of these requirements and be prepared to work with Bhc to find suitable locations for their restaurants.