Is Bhc Franchisor's consent to one assignment cumulative and applicable to subsequent assignments?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's consent to a specific Assignment by Franchisee is not cumulative and will not apply to any subsequent assignments, in respect of each of which Franchisee must comply with this section 12.2.
- (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).
Franchisor's consent to a specific Assignment by Master Franchisee is not cumulative and will not apply to any subsequent assignments, in respect of each of which Master Franchisee must comply with this section 12.2.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisor's consent to a specific assignment by a franchisee or master franchisee is not cumulative. This means that if a franchisee or master franchisee wants to assign their franchise to someone else, they must obtain Bhc's consent for each individual assignment. The consent granted for one assignment does not automatically apply to any future or subsequent assignments.
For each proposed assignment, the franchisee or master franchisee must comply with the requirements outlined in Section 12.2 of the franchise agreement. This typically involves notifying Bhc of the intent to assign, providing information about the proposed transferee, and submitting the transferee's application for approval. Bhc will evaluate each proposed transferee based on its then-existing standards for new or renewing franchisees or master franchisees.
This non-cumulative consent policy ensures that Bhc retains control over who becomes a franchisee or master franchisee within its system. It allows Bhc to assess the qualifications and suitability of each potential transferee independently, maintaining the standards and reputation of the Bhc brand. Franchisees and master franchisees should be aware that they cannot assume that consent for one assignment will guarantee approval for future assignments.