If Bhc disapproves of a proposed site, what is the franchisee required to do?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Premises acceptable to us where the Affiliate Franchised BHC Restaurant will be operated must be located and secured by you and reviewed and consented to by us within four (4) months after the signing of the MFA. If we do not approve the proposed site within 30 days after you complete submission of the requested information (or 15 days after you provide any supplemental information we request), the site will be deemed rejected. If we disapprove, you must promptly propose an alternative location. If you do not locate a site for your Affiliate Franchised BHC Restaurant that is acceptable to us within four (4) months after signing the MFA, we may cancel the MFA based on your failing to find an acceptable site.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if Bhc does not approve a proposed site for an Affiliate Franchised BHC Restaurant within 30 days after the franchisee submits the requested information (or 15 days after supplemental information is provided), the site is deemed rejected. In the event of disapproval, the franchisee must promptly propose an alternative location.
Bhc evaluates potential sites using demographic information, analyzing factors such as area income, traffic patterns, visibility, population density, competition, zoning, parking, and accessibility. The franchisee is responsible for locating and securing a premises acceptable to Bhc within four months of signing the Master Franchise Agreement (MFA).
If the franchisee fails to secure an acceptable site within the stipulated four-month period, Bhc reserves the right to cancel the MFA. This cancellation would be based on the franchisee's failure to find an acceptable site, highlighting the importance of diligent site selection and responsiveness to Bhc's feedback. This process underscores the collaborative nature of site selection, where the franchisee proposes locations, but Bhc retains approval authority to ensure brand consistency and strategic placement.