Can a Bhc franchisee transfer or assign their MFA without approval?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
However, we may
terminate the MFA if you (i) fail to meet the Development Schedule; (ii) fail to comply with any other terms and conditions of the MFA; (iii) make or attempt to make a transfer or assignment in violation of the MFA; or (iv) fail to comply with the terms and conditions of any individual MFA or of any other agreement to which you and we or our affiliates are parties.
Source: Item 12 — Territory (FDD pages 38–39)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee's attempt to transfer or assign their Master Franchise Agreement (MFA) without approval can lead to termination of the agreement. This is a critical point for prospective franchisees to understand.
The FDD specifies that Bhc may terminate the MFA if a franchisee attempts to make a transfer or assignment in violation of the MFA. This indicates that there are likely specific procedures and requirements outlined in the MFA itself regarding transfers and assignments, which a franchisee must adhere to. Failure to comply with these procedures could result in the loss of the franchise rights.
In the franchise industry, it is common for franchisors to have strict controls over the transfer of franchise agreements to ensure that any new franchisee meets their standards and is capable of operating the business successfully. Bhc is no different, and this clause protects Bhc's interests by allowing them to terminate the agreement if an unauthorized transfer is attempted. A prospective franchisee should carefully review the MFA to understand the specific conditions under which a transfer or assignment is permitted and the process for obtaining approval from Bhc.