What happens if the Master Franchisee has not commenced operation of the Franchised Bhc Restaurant within fourteen (14) months after the Effective Date, even after securing suitable premises for its Bhc Restaurant?

According to Bhc's 2025 Franchise Disclosure Document, if a Master Franchisee secures suitable premises for their Bhc restaurant but fails to commence operations within fourteen (14) months after the Effective Date of the agreement, Bhc has the right to terminate the agreement. This termination is effective upon written notice from Bhc to the Master Franchisee.

This clause is significant for prospective Master Franchisees as it sets a clear timeline for opening the first franchised location. The "Effective Date" is a critical starting point, and any delays in launching the restaurant beyond the 14-month mark can lead to the termination of the franchise agreement. This could result in the loss of the franchise rights and any investments made up to that point.

It is important for potential Master Franchisees to understand all the factors that could impact their ability to open within this timeframe, including site selection, construction, permitting, and any other potential delays. They should also assess their own capabilities and resources to ensure they can meet this deadline. Communication with Bhc during the setup process is crucial to address any potential issues and ensure compliance with the agreement terms.