What happens to the original agreement when a Bhc Renewal Franchise Agreement is executed?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
renew the Franchise Agreement;
- (iv) Franchisor withdraws from distributing its products or services through Franchises in the geographic market served by Franchisee.
- (v) At the time of renewal, Franchisee or any Principal Equity Operator has been convicted of a felony or a crime involving moral turpitude, consumer fraud or any other offense
that is reasonably likely, in Franchisor's judgment, to have a materially adverse effect on the Marks, the System, or the goodwill associated with the Marks or System; or
- (d) As a condition to renewing Franchisee's rights, duties and obligations hereunder, not later than 90 days before the end of the term that is expiring, Franchisee and Franchisor must sign either (i) Franchisor's then-current standard Franchise Agreement modified by addendum to remove provisions that only apply to a new franchisee, such as initial franchise fee and initial training requirements ("Renewal Franchise Agreement") or (ii) an addendum to this Agreement extending its term for an additional 10 year term. IN ADDITION TO NOT GRANTING ANY ADDITIONAL RIGHTS BEYOND THOSE GRANTED IN THIS AGREEMENT, THE RENEWAL FRANCHISE AGREEMENT MAY CONTAIN OTHER TERMS THAT ARE SUBSTANTIALLY DIFFERENT FROM THOSE IN THIS AGREEMENT. The Renewal Franchise Agreement, when executed, will supersede this Agreement.
- (e) At the time of renewal, Franchisee must have satisfied all monetary obligations owed by Franchisee to Franchisor and to Franchisor's affiliates and all other material obligations under this Agreement, and Franchisor may examine Franchisee's books and records to verify compliance with this requirement anytime during normal business hours within 120 days of Franchisee's renewal date.
- (f) Before or not later than 90 days after Franchisee's execution of a Renewal Franchise Agreement for an additional term, Franchisee must make such physical modifications (i.e., remodel) to Franch
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, when a Renewal Franchise Agreement is executed, it will supersede the original agreement. To renew their rights, duties, and obligations, both Bhc and the franchisee must sign either the Renewal Franchise Agreement or an addendum extending the original agreement's term for an additional 10 years, no later than 90 days before the end of the current term.
The Renewal Franchise Agreement may contain terms that are substantially different from those in the original agreement, but it will not grant any additional rights beyond those already granted. As a condition of renewal, the franchisee must have satisfied all monetary and material obligations to Bhc and its affiliates. Bhc may also examine the franchisee's books and records to verify compliance within 120 days of the renewal date.
Furthermore, franchisees must make necessary physical modifications to their BHC Restaurant to align with current trade dress and system requirements, and to accommodate any new BHC Products. This includes bringing the restaurant, equipment, materials, and supplies into compliance with the standards applicable to new Bhc franchises. Franchisees must also pay a Renewal Fee of $40,000 when signing the Renewal Franchise Agreement.