If a franchisee has other defaults (including defaults under a lease for your Master Franchise Bhc Restaurants) under the Bhc Multi-Unit Master Franchise Agreement, how long do they have to cure it after notice?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi-Unit Master Franchise Agreement | Summary |
|---|---|---|
| g. "Cause" defined – curable defaults | 13.1 | You have 30 days after notice to cure monetary defaults and other defaults (including defaults under a lease for your Master Franchise BHC Restaurants) that can be cured. (This provision is subject to state law.) |
| h. "Cause" defined – non-curable defaults | 13.2 | Non-curable defaults: your bankruptcy or insolvency; your abandonment of the franchised business; you make material misrepresentations relating to your acquisition of the Franchise or you engage in conduct that reflects materially and unfavorably upon the operation and reputation of the Master Franchised Business or the BHC System; you and us agree in writing to terminate the Franchise; you fail, for a period of 10 days after notification of noncompliance, to comply with any federal, state or local law or regulation applicable to the operation of the Franchise; after curing any default, you engage in the same noncompliance whether or not such noncompliance is corrected after notice; you repeatedly fail to comply with one or more material requirements of the MFA, whether or not corrected after notice; the Franchised Business or your Master Franchise BHC Restaurant is seized, taken over, or foreclosed by a government official, creditor, lien holder or lessor, or that a final judgment against you remains unsatisfied for 30 days; you are convicted of a felony or any other criminal misconduct that is relevant to the operation of the Franchise; an audit or investigation conducted by us reveals that you knowingly maintained false books or records; or submitted false reports to us, or knowingly understated your Gross Revenue or withheld the reporting of any of your Gross Revenue (see further information in Section 13.2(a)(x)); we make a reasonable determination that your continued operation |
Source: Item 17 — Renewal, Termination, Transfer, And Dispute Resolution (FDD pages 43–49)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee has 30 days after notice to cure monetary defaults and other defaults, including defaults under a lease for their Master Franchise Bhc Restaurants, provided these defaults can be cured. This is detailed in Section 13.1 of the Multi-Unit Master Franchise Agreement. This provision is subject to state law, meaning the specific application may vary depending on the franchisee's location.
This 30-day cure period is a standard practice in franchising, allowing franchisees an opportunity to rectify breaches of the agreement before Bhc can terminate the agreement. It applies to defaults that are curable, meaning the franchisee can take action to resolve the issue.
However, certain defaults are considered non-curable, such as bankruptcy, abandonment of the franchised business, or making material misrepresentations. These non-curable defaults can lead to immediate termination of the franchise agreement. Additionally, if a franchisee fails to comply with any federal, state, or local law or regulation applicable to the operation of the Franchise for a period of 10 days after notification of noncompliance, it is considered a non-curable default.
Prospective Bhc franchisees should be aware of both curable and non-curable defaults and understand their obligations under the Multi-Unit Master Franchise Agreement to avoid potential termination of their franchise.