If Bhc disapproves a proposed relocation, what recourse does the franchisee have?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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8.6 Relocation of Franchisee's Franchised BHC Restaurant.
- (a) If Franchisee desires to relocate the Franchised BHC Restaurant, Franchisee may do so provided that not less than 90 days prior to the desired date of relocation (unless prior notice is impractical because of a required relocation in which event notice must be given as soon as possible), Franchisee makes a written request for consent to relocate, describing the reasons for the relocation and providing complete written details respecting any proposed new location.
- (b) Within 20 business days after receiving Franchisee's request, Franchisor will either approve or disapprove in writing such closure or relocation.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if Bhc disapproves a franchisee's proposed relocation, the franchisee has the option to request approval for an alternative proposed new location. This recourse is available to both regular franchisees and master franchisees.
For a regular franchisee, the FDD states that if the relocation is disapproved, the franchisee "may request an alternative proposed new location for Franchisee's Franchised BHC Restaurant pursuant to the provisions of this section 8.6." A similar clause applies to master franchisees, allowing them to "request an alternative proposed new location for Master Franchised BHC Restaurant pursuant to the provisions of this section 8.6."
This process allows the franchisee to continue seeking an acceptable relocation site even after an initial rejection. However, the franchisee must open at the new location promptly after closing the previous one, or they will be considered in material default of the franchise agreement. This clause underscores the importance of securing an approved location and managing the relocation process efficiently to avoid jeopardizing the franchise agreement.