Is a Bhc franchisee required to purchase or lease real estate from Bhc or its affiliates?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither you, your Affiliate Franchisee nor your Subfranchisees are required to purchase or lease real estate from us or our affiliates. While you are required to have access to space from which to communicate with us and operate your Master Franchise Business, you are not obligated to open and maintain a separate business office within the Territory. If you elect, however, to open and maintain a separate business office for your Master Franchise Business, we do not need to consent to its location or lease. We also do not have requirements on how you must construct and equip your business office, however, it is solely your responsibility to ensure that your business office complies with all applicable federal, state and local laws, statutes, codes, rules, regulations and standards.
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, franchisees, affiliate franchisees, and subfranchisees are not required to purchase or lease real estate from Bhc or its affiliates. However, the franchisee is responsible for locating and securing a suitable site for their Affiliate Franchised Bhc Restaurant. This site must then be reviewed and approved by Bhc within four months of signing the Master Franchise Agreement (MFA).
Bhc uses demographic information to evaluate potential sites, considering factors such as area income, traffic patterns, visibility, population density, competition, zoning, parking, and accessibility. If Bhc rejects a proposed site, the franchisee must promptly propose an alternative location. Failure to secure an approved site within the specified timeframe may result in the cancellation of the MFA.
While franchisees are required to have access to space to communicate with Bhc and operate their Master Franchise Business, they are not obligated to open and maintain a separate business office within the territory. If a franchisee chooses to open a separate business office, Bhc does not need to consent to its location or lease, and there are no specific requirements for its construction or equipment, aside from compliance with applicable laws and regulations.