If Bhc operates the franchised Bhc Restaurant on the franchisee's behalf after the death of the franchisee, what is the maximum period for which Bhc can operate the restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor determines (i) there is no imminent sale to a qualified successor or (ii) there is no heir or other Principal Equity Operator capable of operating the Franchise, Franchisor may (but is not obligated to) immediately commence operating the Franchised BHC Restaurant on Franchisee's behalf for a period of up to 90 days, renewable as Franchisor deems necessary for up to one year and Franchisor will periodically discuss the status with the heirs of the decedent.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, in the event of the death of an individual franchisee or a majority equity owner, Bhc has the option to operate the franchised Bhc Restaurant on the franchisee's behalf. Bhc can commence operating the restaurant if it determines that there is no imminent sale to a qualified successor or no heir capable of operating the franchise.
Bhc can operate the restaurant for an initial period of up to 90 days. This initial period can be renewed as Bhc deems necessary, but the total operation period cannot exceed one year. During this time, Bhc will periodically discuss the status of the franchise with the heirs of the deceased.
This arrangement provides a temporary solution to ensure the continued operation of the Bhc restaurant while the franchisee's estate is being settled. However, it's important to note that Bhc is not obligated to operate the restaurant and may choose not to do so. Franchisees should consider this when planning for the future of their business and discuss succession plans with their legal and financial advisors.