If the consideration for a Bhc Master Franchise assignment is non-monetary, how must it be expressed in the notice to the Franchisor?

According to Bhc's 2025 Franchise Disclosure Document, if a Master Franchisee proposes to assign their franchise and the consideration involves non-monetary items, the Master Franchisee must express the value of this non-monetary consideration in reasonably equivalent monetary terms in the written notice to Bhc. This means that if the deal includes items like property, services, or other in-kind exchanges instead of cash, the Master Franchisee needs to assign a dollar value to those items.

However, the FDD stipulates that if the non-monetary consideration involves aspects that cannot be easily translated into monetary terms, Bhc will not consider that consideration when exercising its right of first refusal. This implies that Bhc is primarily concerned with the monetary value of the assignment when deciding whether to approve the transfer or exercise its right to take over the franchise itself.

This requirement ensures that Bhc can accurately assess the financial implications of the proposed assignment and make an informed decision. It also protects Bhc's interests by allowing them to compare the proposed deal with other potential offers or to determine the fair market value of the franchise if they choose to exercise their right of first refusal. Prospective franchisees should be aware of this requirement and be prepared to provide a clear and justifiable monetary valuation of any non-monetary consideration involved in a proposed assignment.