Is the Bhc franchisor obligated to assist the franchisee in the site selection process?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc is not obligated to assist franchisees or master franchisees in the site selection process. While Bhc may offer assistance, it is not a requirement. The franchisee or master franchisee is primarily responsible for locating and securing a suitable premises for their Bhc restaurant.
Bhc does, however, reserve the right of final review and consent for any proposed location. Bhc uses available demographic information to evaluate potential sites, analyzing factors such as area income, traffic patterns, visibility, population density, competition, zoning, parking, and accessibility. This review process ensures that the location aligns with Bhc's standards and has the potential for successful operation, although Bhc does not guarantee success at any particular location.
Prospective franchisees should note that while Bhc may provide a sample prototype layout and floor plan for the restaurant, the franchisee is responsible for all costs associated with adapting these plans to the specific site. This includes employing architects, designers, and engineers to finalize the plans and manage licensing matters. Additionally, franchisees must reimburse Bhc for site design review fees of $2,500 and site review fees ranging from $2,000 to $4,000.