If Bhc develops or franchises a Captive Location, is that location included in the franchisee's Designated Area?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Captive locations will be excluded from your Designated Area, and we have the right to develop or franchise the following captive locations: (1) military bases; (2) public transportation facilities; (3) sports facilities, including race tracks; (4) student unions or other similar buildings on college or university campuses; (5) amusement and theme parks; (6) malls; (7) special events; (8) hospitals; (9) hotel, resort, or other lodging facility; (10) state or national parks; (11) exhibition hall; conference facility or convention center; (12) casino or gambling establishment; (13) esports events and venues; (14) street fairs; (15) delivery facilities (e.g.,, ghost kitchens) or (16) any similar area to the sites referenced herein (individually and collectively, "Captive Location(s)).We may not alter the Development Area without your written agreement. However, we may
Source: Item 12 — Territory (FDD pages 38–39)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Captive Locations are excluded from a franchisee's Designated Area. Bhc retains the right to develop or franchise these locations, which include military bases, public transportation facilities, sports facilities (including race tracks), student unions or similar buildings on college or university campuses, amusement and theme parks, malls, special events, hospitals, hotels/resorts/lodging facilities, state or national parks, exhibition halls/conference facilities/convention centers, casinos/gambling establishments, esports events and venues, street fairs, and delivery facilities (e.g., ghost kitchens). Bhc also reserves the right to develop or franchise any similar area to these sites.
This exclusion of Captive Locations means that even if a Bhc franchisee has a designated territory, Bhc can still establish or franchise a Bhc restaurant within that territory in any of the listed Captive Locations. The franchisee will not have any territorial exclusivity in those specific locations. This could impact the potential revenue and customer base of a franchisee's location, as Bhc can operate competing locations within the franchisee's general territory.
Prospective franchisees should carefully consider the implications of these Captive Location exclusions and how they might affect their business. It would be prudent to discuss with Bhc the potential for Captive Locations within their desired territory and to assess the potential impact on their projected sales and profitability. Understanding the specific locations Bhc might target as Captive Locations can help a franchisee make a more informed decision about the franchise opportunity.