How will the Franchisor deliver the notice of approval or disapproval of the proposed assignment for a Bhc franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Within 60 days after the receipt of all necessary information and documentation required pursuant to section 12.2(b) above, or as specified by other written agreement between Franchisor and Master Franchisee, Franchisor will notify Master Franchisee of the approval or disapproval of the proposed Assignment by Master Franchisee.
The notice will be in writing and delivered to Master Franchisee by business courier in accordance with section 16.1 hereof.
Should Franchisor elect not to exercise Franchisor's right of first refusal, or should such right of first refusal be inapplicable, as herein provided, Franchisor's consent to the proposed Assignment by Master Franchisee will be deemed approved, unless disapproved by Franchisor in writing and for reasons permitted by the law governing this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisor will deliver the notice of approval or disapproval of a proposed assignment to the master franchisee in writing via business courier, referencing section 16.1 of the agreement. This notification will occur within 60 days after Bhc receives all necessary information and documentation related to the proposed assignment, as outlined in section 12.2(b), or as otherwise specified in a written agreement between Bhc and the master franchisee.
This process is important for a prospective master franchisee to understand because it outlines the formal communication method Bhc uses for significant decisions like assignment approvals. The use of a business courier ensures a documented and traceable delivery of the notice, which can be crucial in legal and contractual matters. The 60-day timeframe provides a defined period for Bhc to review the proposed assignment and make a decision.
It is also important to note that the franchisor has the right of first refusal. If Bhc chooses not to exercise this right, and if the franchisor does not disapprove the assignment in writing for legally permissible reasons, the consent to the proposed assignment will be deemed approved. This clause protects the master franchisee by preventing the franchisor from unduly delaying or obstructing a legitimate assignment. The master franchisee should be aware of the conditions under which the assignment is considered approved even without explicit written consent.
Prospective franchisees should pay close attention to Section 16.1, which governs how notices are to be delivered, to ensure they understand their obligations and rights regarding communication with Bhc. Understanding these procedures is essential for maintaining a clear and legally sound relationship with the franchisor throughout the franchise term.