What happens if a Bhc franchisee fails to meet the Development Schedule outlined in the MFA?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ly and collectively, "Captive Location(s)).We may not alter the Development Area without your written agreement. However, we may
terminate the MFA if you (i) fail to meet the Development Schedule; (ii) fail to comply with any other terms and conditions of the MFA; (iii) make or attempt to make a transfer or assignment in violation of the MFA; or (iv) fail to comply with the terms and conditions of any individual MFA or of any other agreement to which you and we or our affiliates are parties.
We do not currently, nor do we have any plans in the future to operate or franchise businesses under a different trademark that will sell goods or services like those you will offer.
Source: Item 12 — Territory (FDD pages 38–39)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, failing to meet the Development Schedule outlined in the Master Franchise Agreement (MFA) can lead to termination of the agreement. The Development Schedule specifies the timeline and requirements for opening a certain number of Bhc restaurants within the Development Area.
Bhc may terminate the MFA if a franchisee fails to meet the Development Schedule. Additionally, Bhc can terminate the MFA if the franchisee fails to comply with any other terms and conditions of the MFA, attempts to make unauthorized transfers or assignments, or fails to comply with the terms of any individual franchise agreement or other agreements with Bhc or its affiliates.
Meeting the Development Schedule is crucial for maintaining the franchisee's exclusive rights to develop Bhc restaurants within the Development Area. The continuation of these exclusive rights depends on adhering to the development schedule outlined in the MFA. The Development Area granted by the MFA cannot be altered unless both Bhc and the franchisee mutually agree.