If the terms and conditions of a proposed Bhc franchise assignment include non-monetary consideration, how must that consideration be expressed in the notice to Bhc?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
If the specified terms and conditions include consideration of a non-monetary nature, such consideration must be expressed in reasonably equivalent monetary terms, and if it involves matters that cannot be stated in monetary terms, such consideration will not be considered in connection with Franchisor's right of first refusal.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, when a Master Franchisee proposes an assignment that includes non-monetary consideration, the notice to Bhc must express this consideration in reasonably equivalent monetary terms. This means that if the deal involves something other than money, such as services or goods, the value of those items must be translated into a dollar amount for the purposes of the notice.
However, if the non-monetary consideration involves aspects that cannot be easily converted into monetary terms, Bhc will not consider that aspect of the consideration when evaluating its right of first refusal. This could include things like the assignee's reputation or specific industry expertise that are difficult to quantify in terms of monetary value.
This requirement ensures that Bhc can accurately assess the proposed assignment and make an informed decision regarding its right of first refusal. By having a clear monetary value associated with all aspects of the consideration, Bhc can compare the offer to other potential offers or to the value of retaining the franchise, and it protects Bhc's interests in maintaining a consistent and transparent evaluation process for franchise assignments.