What happens if the Franchisor disapproves a proposed relocation of a Bhc Restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
8.6 Relocation of Franchisee's Franchised BHC Restaurant.
- (a) If Franchisee desires to relocate the Franchised BHC Restaurant, Franchisee may do so provided that not less than 90 days prior to the desired date of relocation (unless prior notice is impractical because of a required relocation in which event notice must be given as soon as possible), Franchisee makes a written request for consent to relocate, describing the reasons for the relocation and providing complete written details respecting any proposed new location.
- (b) Within 20 business days after receiving Franchisee's request, Franchisor will either approve or disapprove in writing such closure or relocation. If Franchisor disapproves a proposed relocation, Franchisee may request an alternative proposed new location for Franchisee's Franchised BHC Restaurant pursuant to the provisions of this section 8.6. Notwithstanding the foregoing, Franchisee shall be deemed to be in material default if Franchisee fails to open the Franchised BHC Restaurant at the new location within closure of the Franchised BHC Restaurant at the prior location.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if Bhc disapproves a proposed relocation of a franchised restaurant, the franchisee can request approval for an alternative location. The franchisee must submit a written request for relocation approval to Bhc at least 90 days before the desired relocation date. This request should detail the reasons for the relocation and provide complete information about the proposed new location.
Bhc has 20 business days to either approve or disapprove the relocation request in writing. If Bhc disapproves, the franchisee is then permitted to propose a different location for approval.
This process ensures that Bhc maintains control over the brand's locations and standards, while also allowing franchisees some flexibility to relocate if necessary. However, franchisees should be aware that failure to open at the approved new location after closing the previous location may constitute a material default of the franchise agreement.