Is the franchisee solely responsible for constructing and equipping the Bhc restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will consult with Franchisee, to the extent Franchisor deems necessary, on the leasehold improvement and equipping of the Franchised BHC Restaurant (and Franchisor may require the Franchised BHC Restaurant to have a certain color scheme and decorative trade dress), but it is and will remain Franchisee's sole responsibility to diligently construct, equip and otherwise make ready, and then open the Franchised BHC Restaurant.
Franchisee is responsible, at Franchisee's expense, for obtaining all zoning classifications, permits, clearances, certificates of occupancy and center clearances which may be required by governmental authorities and to comply with all covenants, conditions, easements, and restrictions of record.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisee is indeed primarily responsible for the construction and equipping of their restaurant. While Bhc offers a sample prototype layout and floor plan, the franchisee bears the responsibility for adapting these plans to the specific location. This includes employing architects, designers, and engineers approved by Bhc, and managing all licensing and permitting processes.
Bhc maintains control over the design of the restaurant and requires written consent for the final plans, specifications, and contractors. Bhc may consult with the franchisee on leasehold improvements and equipping, including dictating the color scheme and decorative trade dress. However, the FDD clearly states that the franchisee is ultimately responsible for the diligent construction, equipping, and opening of the restaurant. This also includes securing necessary zoning classifications, permits, and certificates of occupancy.
Franchisees must use licensed and Bhc-approved contractors, designers, vendors, and architects for any leasehold improvements. Bhc disclaims any warranty regarding the quality of services provided by these referred parties and is not liable for delays or losses resulting from the restaurant's design or leasehold improvements. Franchisees are also responsible for a $600 inspection fee, along with covering accommodation, transportation, meals, and daily allowances for Bhc personnel during up to three on-site visits.
Failure to complete the design, leasehold improvements, inventorying, equipping, and opening of the Bhc restaurant promptly can result in a breach of the franchise agreement. Bhc requires access to the restaurant during construction and may request alterations or modifications. Ultimately, while Bhc provides guidance and oversight, the financial and logistical burden of constructing and equipping the restaurant falls on the franchisee.