If a Bhc franchisee acknowledges in writing that inactivity is due to events beyond their control, is the franchise still considered 'Abandoned'?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
as defined in Article 1 below) and goodwill to conduct the "Franchised Business" (as defined in Article 1 below) at a specific "Franchised BHC Restaurant" (as defined in Article 1 below and identified in Exhibit 1 attached) operated by Franchisee.
- C. Franchisor is willing to grant Franchisee a "Franchise" (as defined in section 3.1 hereof), in accordance with the provisions of this Agreement and the Operations Manual.
1. DEFINITIONS
"Abandoned" means cessation of operation of the Franchised Business for a period of five consecutive business days, without Franchisor's prior written consent. A repeated pattern of inactivity at Franchisee's Franchised BHC Restaurant for periods of less than five consecutive business days may result in the Franchised Business being deemed Abandoned by Franchisee if in Franchisor's judgment such inactivity adversely impacts the Franchised Business. However, Franchisee's Franchised BHC Restaurant will not be deemed Abandoned if the inactivity is due to natural disasters or other matters reasonably beyond Franchisee's control, provided that Franchisee gives Franchisor notice of a
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Bhc restaurant will not be deemed 'Abandoned' if the inactivity is due to circumstances beyond the franchisee's control, such as natural disasters. However, this exception is conditional.
To avoid being classified as 'Abandoned', the franchisee must provide Bhc with notice of the closure within five business days of the event causing the inactivity. Additionally, the franchisee must acknowledge in writing that the inactivity stems from causes beyond their control.
Furthermore, the franchisee is required to re-establish the Bhc restaurant and resume full operations within 180 days from the initial event that caused the inactivity, unless Bhc grants a longer period. Failure to meet these conditions could result in the franchise being deemed 'Abandoned', even if the initial inactivity was due to uncontrollable events.