Does the Bhc franchisor have the final say in approving the location of the Franchised Bhc Restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must commence operation of the Franchised Business at Franchisee's Franchised BHC Restaurant as soon as practicable after Franchisee's receipt of a certificate of occupancy (or equivalent document) from the responsible local government authority.
If after Franchisee has located and secured suitable premises (that Franchisor consents to) for its Franchised BHC Restaurant, Franchisee has not commenced operation of the Franchised Business within fourteen (14) months after the Effective Date, Franchisor may terminate this Agreement effective on written notice.
- (c) Franchisor may, but is not obligated to, assist Franchisee in the site selection process.
However, Franchisor reserves the sole right of final review and consent to any location of the Franchised BHC Restaurant.
Franchisor uses available demographic information to evaluate the site and the area in which it is located, and analyze area income figures, traffic patterns, visibility, population density, competition, zoning, parking, accessibility, and other related, relevant circumstances.
Franchisor's final review and consent to the location of Franchisee's Franchised BHC Restaurant is not a guarantee that a BHC business can be successfully operated there or anywhere else.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisor retains the final authority to approve the location of a franchised Bhc restaurant. While the franchisee is responsible for finding and securing a suitable location, Bhc reserves the right to review and consent to that location. Bhc may assist in the site selection process, but is not obligated to do so.
Bhc uses demographic information to evaluate potential sites, analyzing factors such as income figures, traffic patterns, visibility, population density, competition, zoning, parking, and accessibility. This review helps Bhc ensure that the location aligns with its brand standards and has the potential for success. However, Bhc states that its approval does not guarantee the success of the restaurant at that location.
The franchisee is required to submit site information to Bhc for review and may have to reimburse Bhc for costs incurred during the review process. If Bhc rejects a proposed site, the franchisee must propose an alternative location. The franchisee has a limited time frame, specifically four months after the effective date of the franchise agreement, to find a site acceptable to Bhc. Failure to do so could result in the termination of the franchise agreement.