What happens if a Bhc franchisee fails to take required actions after termination?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) If Franchisee fails or omits to make or cause to be made any removal or change described in section 15.1(b)(i) – (v) above, then Franchisor will have the right within 15 days after written notice to enter Franchisee's Franchised BHC Restaurant or other premises from which the Franchised Business is being conducted without being deemed guilty of trespass or any other tort, and make or cause to be made such removal and changes at Franchisee's expense, which expenses Franchisee agrees to pay to Franchisor promptly upon demand.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a franchisee fails to take the required actions after termination, the franchisor has the right to take action. Specifically, if the franchisee fails to remove signs bearing Bhc's marks, erase the marks from their materials, discontinue advertising implying association with Bhc, assign telephone numbers and social media listings to Bhc, or pay outstanding royalties and fees, Bhc has the right to act.
Bhc can enter the premises where the franchised business was conducted within 15 days after providing written notice to the franchisee. Bhc is allowed to make the necessary removals and changes at the franchisee's expense. The franchisee is then obligated to promptly pay these expenses to Bhc upon demand.
This clause protects Bhc's brand identity and ensures a clean break from the terminated franchisee. It also allows Bhc to recover any outstanding payments and maintain control over its branding and contact information. For a prospective franchisee, this highlights the importance of understanding and complying with all post-termination obligations to avoid incurring additional expenses and potential disputes with Bhc.