Is Franchisor's consent to a specific assignment by the Bhc Master Franchisee cumulative?

According to Bhc's 2025 Franchise Disclosure Document, the franchisor's consent to a specific assignment by a Master Franchisee is not cumulative. This means that if Bhc grants permission for one transfer or assignment, that consent does not extend to any future assignments.

For a Bhc Master Franchisee, this stipulation means that each time they wish to assign, transfer, or sell their interest in the agreement, the BHC Restaurant assets, or a controlling interest in the Master Franchisee entity, they must seek and obtain new written consent from Bhc. The initial approval does not set a precedent or guarantee future approvals. This requirement applies regardless of whether the previous assignment was to a related party or an independent third party.

This policy ensures that Bhc retains control over who becomes a Master Franchisee and maintains the right to assess the qualifications and suitability of each proposed assignee. It protects Bhc's interests by preventing unauthorized transfers and ensuring that all future Master Franchisees meet their standards. The Master Franchisee must comply with the assignment terms in section 12.2 for each subsequent assignment.