If the Bhc franchisor disapproves of a proposed site, what is the franchisee required to do?

According to Bhc's 2025 Franchise Disclosure Document, if the franchisor disapproves of a proposed site for a new franchise location, the franchisee must promptly propose an alternative location. This requirement applies to both franchisees and master franchisees. Bhc does not locate sites for franchisees, but may offer assistance in locating or evaluating a site for a reasonable fee, though they are not obligated to do so.

This process is crucial for franchisees as finding an acceptable location is a condition of the franchise agreement. Franchisees are responsible for locating and securing premises that meet Bhc's standards and specifications within four months of the agreement's effective date. The franchisor has the right to review and consent to the site. If a franchisee fails to secure an acceptable site within the stipulated timeframe, Bhc reserves the right to cancel the franchise agreement.

Bhc evaluates potential sites based on demographic information, income figures, traffic patterns, visibility, population density, competition, zoning, parking, and accessibility. However, the franchisor's approval of a site does not guarantee the success of the business. Franchisees are also responsible for reimbursing Bhc for all costs and expenses incurred during the site review process. This includes paying a Site Design Review Fee of $2,500 and a Site Review Fee ranging from $2,000 to $4,000.

For franchisees considering relocating an existing Bhc restaurant, a similar process applies. Franchisees must submit a written request for relocation approval at least 90 days before the desired relocation date, providing details about the reasons for relocation and the proposed new location. Bhc will then approve or disapprove the relocation within 20 business days. If disapproved, the franchisee can propose an alternative location, mirroring the procedure for initial site selection.