What must a Bhc franchisee do prior to any assignment of the 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 who intends to sell, transfer, or assign their franchise must first notify Bhc of their intentions. This notification must be in writing and delivered to Bhc according to the guidelines in section 16.1 of the franchise agreement. The notification must include specific details regarding the potential transaction.
The written notice to Bhc must include the name and address of the proposed transferee. Additionally, the franchisee must provide a copy of all agreements related to the sale, assignment, or transfer of the franchise, the assets of the franchised Bhc restaurant, or any controlling interest in the franchisee entity, if applicable. The franchisee must also submit the proposed transferee's application for approval to become the successor franchisee. This application should include all forms, financial disclosures, and related information that Bhc typically uses when interviewing prospective new franchisees, assuming Bhc makes these forms available to the franchisee.
If Bhc's standard forms for new franchisees are accessible, the franchisee should include them in the application. If these forms are not readily available, the franchisee must request that Bhc deliver the forms via business courier within 15 calendar days. After receiving the transferee's application, Bhc will inform both the franchisee and the proposed transferee in writing if any additional information or documentation is needed to complete the transfer application. If Bhc's standards for approving new or renewing franchisees are not readily available to the franchisee, Bhc will communicate these standards to the franchisee within 15 calendar days of the notification of intent to sell or transfer the franchise.