Is Franchisor's consent to a specific Assignment by Master Franchisee for a Bhc franchise 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 a master franchisee seeks to assign their rights or interests to another party, the franchisor's approval for that specific assignment does not extend to any future assignments.

In practical terms, each time a Bhc master franchisee wants to transfer their interest in the agreement, the BHC Restaurant, or a controlling interest in the master franchisee entity, they must obtain new written consent from Bhc. The prior approval does not carry over or apply to subsequent assignments. This requirement ensures that Bhc maintains control over who operates its franchises and allows them to evaluate each potential new franchisee individually.

This stipulation is typical in franchising, as franchisors want to carefully vet and approve each new franchisee to protect their brand and ensure consistent operations. A prospective Bhc master franchisee should understand that selling or transferring their franchise rights will require going through the approval process with Bhc each time, adding a layer of complexity and potential delays to any future exit strategy.