Can the Bhc Franchisor assign its interests in the lease after assuming it?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
At or after the time Franchisor assumes Tenant's interests under the Lease, the Franchisor may, at any time, assign such interests or sublet the Premises to a BHC franchisee. Any such assignment
shall be subject to the prior written consent of the Landlord, which Landlord shall not unreasonably withhold as it relates to a creditworthy franchisee who otherwise meets Franchisor's then-current standards and requirements for franchisees and agrees to operate the restaurant as a BHC Restaurant pursuant to a Franchise Agreement with Franchisor. Upon receipt by Landlord of an assumption agreement pursuant to which the assignee agrees to assume the Lease and to observe the terms, conditions, and agreements on the part of Tenant to be performed under the Lease, the Franchisor shall thereupon be released from all liability as tenant under the Lease from and after the date of assignment, without any need of a written acknowledgement of such release by Landlord.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if Bhc assumes the tenant's interests in a lease, it has the right to assign those interests or sublet the premises to another Bhc franchisee at any time. However, this assignment is contingent upon obtaining prior written consent from the landlord. The landlord cannot unreasonably withhold consent if the new franchisee is creditworthy, meets Bhc's current standards for franchisees, and agrees to operate the restaurant as a franchised Bhc location under a franchise agreement with Bhc.
Upon the landlord's receipt of an assumption agreement, where the new franchisee commits to adhering to the lease terms, Bhc is released from all liabilities as the tenant from the assignment date onward. This release occurs without needing written acknowledgment from the landlord.
This clause is included in the addendum to the lease, which the landlord acknowledges is a requirement of Bhc's franchise agreement. The landlord also acknowledges that the tenant (franchisee) is not an agent or employee of Bhc and cannot create any liability on behalf of Bhc unless the lease is assigned to and accepted by Bhc in writing.