If Bhc assists the Master Franchisee in locating or evaluating a site, is Bhc obligated to do so?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor does not locate sites for Master Franchisee. However, Franchisor may, without, obligation, assist Master Franchisee in locating or evaluating a site for a reasonable fee.
- (c) Franchisor may, but is not obligated to, assist Master Franchisee in the site selection process.
However, Franchisor reserves the sole right of final review and consent to any location of the Franchised BHC Restaurant.
Franchisor uses available demographic information to evaluate the site and the area in which it is located, and analyze area income figures, traffic patterns, visibility, population density, competition, zoning, parking, accessibility, and other related, relevant circumstances.
Franchisor's final review and consent to the location of the Franchised BHC Restaurant is not a guarantee that a BHC business can be successfully operated there or anywhere else.
Franchisor will provide Master Franchisee a floor plan and Master Franchisee must pay Franchisor for all costs and expenses that Franchisor incurs in providing the site design review of $2,500 ("Site Design Review Fee") and site review fee of $2,000 to $4,000 ("Site Review Fee").
- (g) Unless otherwise agreed to in writing by Master Franchisee and Franchisor, Master Franchisee has the sole responsibility for locating, securing, and obtaining suitable premises for the Franchised BHC Restaurant.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc is not obligated to assist in site selection. While Bhc may offer assistance to both franchisees and master franchisees in locating or evaluating potential sites, this assistance is not a requirement. The final decision on site selection rests solely with Bhc, and their approval does not guarantee the success of the Bhc business at that location.
Specifically, the master franchisee is responsible for locating and securing premises that meet Bhc's standards within four months of the agreement's effective date. Bhc will review the submitted site information and either accept or reject the proposed location. The master franchisee must cover all costs Bhc incurs during the site review process. If Bhc disapproves of a site, the master franchisee must propose an alternative location promptly.
Bhc provides a sample prototype layout and floor plan for the restaurant. The master franchisee must pay Bhc a $2,500 site design review fee and a $2,000 to $4,000 site review fee. The master franchisee is responsible for hiring architects and engineers to adapt the plans and handle licensing matters. Ultimately, the master franchisee is responsible for securing suitable premises, unless otherwise agreed upon in writing with Bhc.