What happens if Bhc does not approve a proposed site for the Bhc restaurant within the specified timeframe?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Premises acceptable to Franchisor where Franchisee's Franchised BHC Restaurant will be operated must be located and secured by Franchisee and reviewed and consented to by Franchisor within four (4) months after the Effective Date. Upon signing this Franchise Agreement, Franchisee must promptly locate one or more proposed sites which meet Franchisor's current standards and specifications. For each proposed site, Franchisee will submit to Franchisor certain information regarding the site that Franchisor requests. Upon receiving the information regarding a proposed site, Franchisor will review the information and either accept or reject the proposed site. For any site that Franchisor reviews, Franchisee must reimburse Franchisor for all costs and expenses that Franchisor incurs in reviewing the site. If Franchisor does not approve the proposed site within 30 days after Franchisee's complete submission of the requested information (or 15 days after Franchisee provides any supplemental information Franchisor requests), the site will be deemed rejected. If Franchisor disapproves, Franchisee must promptly propose an alternative location. Franchisor does not locate sites for Franchisee. However, Franchisor may, without, obligation, assist Franchisee in locating or evaluating a site for a reasonable fee. If Franchisee has not located a site for Franchisee's Franchised BHC Restaurant that is acceptable to Franchisor within four (4) months after the Effective Date, Franchisor may cancel this Agreement on the basis of Franchisee's failing to find an acceptable site.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if Bhc does not approve a proposed site for a franchised restaurant within the specified timeframe, the site will be deemed rejected. Specifically, if Bhc does not approve the proposed site within 30 days after the franchisee's complete submission of the requested information, or within 15 days after the franchisee provides any supplemental information Bhc requests, the site is considered rejected.
Following a rejection, the franchisee must promptly propose an alternative location. Bhc does not locate sites for franchisees, but may assist in locating or evaluating a site for a reasonable fee, without obligation. The franchisee has four months after the effective date of the Franchise Agreement to locate a site acceptable to Bhc.
If the franchisee fails to secure an acceptable site within this four-month period, Bhc retains the right to cancel the Franchise Agreement due to the franchisee's failure to find an acceptable site. This clause underscores the importance of franchisees identifying and securing suitable locations promptly, as failure to do so can lead to the termination of the franchise agreement.