If Bhc places an interim manager in the franchised restaurant after a franchisee's death, what expenses is the franchisee responsible for paying?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor can place an interim manager Franchisee's Franchised BHC Restaurant, and Franchisee must pay Franchisor the manager's salary, transportation, lodging and related living expenses, and our management administration fee of 15%.
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 a franchisee's death, Bhc has the option to place an interim manager at the franchised location. If Bhc exercises this option, the franchisee's estate is responsible for covering specific expenses related to the interim manager.
Specifically, the franchisee must pay the interim manager's salary, transportation costs, lodging expenses, and related living expenses. In addition to these direct costs, the franchisee is also responsible for paying Bhc a management administration fee, which is calculated as 15% of the total expenses.
This means that the financial burden on the franchisee's estate can be significant during the period that Bhc provides an interim manager. It is important for prospective franchisees to consider this potential expense and ensure that their estate planning adequately addresses this possibility. Franchisees should clarify with Bhc the expected duration of the interim management and seek detailed estimates of all associated costs to better prepare for this contingency.