Does the Bhc franchisor have to provide forms to the franchisee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Prior to any Assignment by Franchisee, Franchisee must notify Franchisor of Franchisee's intent to sell, transfer or assign the Franchise, all (or substantially all) the assets of the Franchised BHC Restaurant, or a controlling or non- controlling interest in Franchisee (if an entity).
The notice must be in writing, delivered to Franchisor in accordance with section 16.1 hereof and include the following:
(i) the proposed transferee's name and address;
(ii) a copy of all agreements related to the sale, assignment, or transfer of the Franchise, the assets of the Franchised BHC Restaurant, or the controlling interest in Franchisee (if an entity); and
(iii) the proposed transferee's application for approval to become the successor franchisee (this application must include all forms, financial disclosures and related information generally used by Franchisor when interviewing prospective new franchisees, if Franchisor makes those forms available to Franchisee.
If the forms are not readily available, Franchisee must request that Franchisor deliver the forms to Franchisee by business courier in accordance with section 16.1 hereof within 15 calendar days).
As soon as practicable after the receipt of the proposed transferee's application, Franchisor will notify, in writing, Franchisee and the proposed transferee of any additional information or documentation necessary to complete the transfer application.
If Franchisor's then-existing standards for the approval of new or renewing franchisees are not readily available to Franchisee when Franchisee notifies Franchisor of Franchisee's intent to sell, transfer, or assign the Franchise, all or substantially all of the assets of the Franchised BHC Restaurant, or a controlling or non-controlling interest in Franchisee (if an entity), Franchisor will communicate the standards to Franchisee within 15 calendar days.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc may be required to provide forms to the franchisee under specific circumstances, particularly related to the transfer of the franchise. Specifically, if the forms for a new franchisee are not readily available to the franchisee when they notify Bhc of their intent to sell, transfer, or assign the franchise, Bhc will communicate the standards to the franchisee within 15 calendar days.
Additionally, in the event of a proposed transfer, the franchisee's notice to Bhc must include the proposed transferee's application for approval to become the successor franchisee. This application must include all forms, financial disclosures, and related information generally used by Bhc when interviewing prospective new franchisees, if Bhc makes those forms available to the franchisee. If the forms are not readily available, the franchisee must request that Bhc deliver the forms to the franchisee by business courier within 15 calendar days.
This suggests that while Bhc doesn't automatically provide all forms, they are obligated to provide specific forms related to the transfer process if they are not readily available to the franchisee. This ensures that the franchisee can meet the requirements for a potential transfer and that Bhc maintains control over the approval of new franchisees.