What is the geographic area in which the Master Franchisee of Bhc has Development Rights referred to as?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the terms and conditions of this Agreement, Franchisor hereby grants to Master Franchisee:
- (a) the exclusive, non-transferable right and license to, (a) establish and operate at least one (1) Franchised BHC Restaurant through Master Franchisee's Affiliate, and (b) after opening at least one (1) Affiliate Franchised BHC Restaurant, to grant subfranchises to Subfranchisees to establish and operate Subfranchised BHC Restaurants in accordance by entering Subfranchise Agreements to establish and operate BHC Restaurants using the BHC System and IP Rights, and in accordance with the Operating Manuals ("Development Rights") with the schedule of openings attached hereto as Exhibit 1 (the "Development Schedule") and within the geographical area (the "Development Area") indicated in the Development Schedule.
- (b) So long as Master Franchisee's obligations under the Development Schedule are being met on a timely basis and until this Agreement terminates, Franchisor will not itself operate a BHC Restaurant within the Development Area, nor allow any of its affiliates or other BHC franchisees to do so. Captive locations will be excluded from Master Franchisee's Development Area and Franchisor has the right to develop or franchise the following Captive location locations: (1) military bases; (2) public transportation facilities; (3) sports facilities, including race tracks; (4) student unions or other similar buildings on college or university campuses; (5) amusement and theme parks; (6) malls; (7) special events; (8) hospitals; (9) hotel, resort, or other lodging facility; (10) state or national parks; (11) exhibition hall; conference facility or convention center; (12) casino or gambling establishment; (13) esports events and venues; (14) street fairs; (15) delivery facilities (e.g.,, ghost kitchens) or (16) any similar area to the sites referenced herein n (collectively, "Captive locations"). Franchisor may not alter the Development
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the geographic area in which the Master Franchisee has Development Rights is referred to as the "Development Area". The Master Franchisee has the exclusive right to establish and operate a Franchised Bhc Restaurant through an affiliate, and to grant subfranchises to Subfranchisees to establish and operate Subfranchised Bhc Restaurants.
The Development Rights are subject to the Master Franchisee meeting the obligations outlined in the Development Schedule. Bhc will not operate a Bhc Restaurant within the Development Area, nor allow any of its affiliates or other Bhc franchisees to do so, as long as the Master Franchisee's obligations are met.
However, the Development Area excludes captive locations, where Bhc retains the right to develop or franchise. These captive locations include military bases, public transportation facilities, sports facilities, college campuses, amusement parks, malls, special events, hospitals, hotels, state/national parks, exhibition halls, casinos, esports venues, street fairs, and delivery facilities. Bhc may not alter the Development Area without the Master Franchisee's written agreement.