What information and documentation must a Bhc franchisee provide to the franchisor when transferring the franchise interest due to death or incapacity, and what are the deadlines for providing this information?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) No Transfer under this section 12.4 will be subject to (i) Franchisor's right of first refusal set forth in section 12.3 hereof or (ii) the Transfer Fee set forth in section 12.2(b)(vii) above, although such refusal right and Transfer Fee will be applicable to any subsequent Transfer by Franchisee's (or a Majority Equity Owner's) heirs, personal representatives, or conservators.
However, Franchisee must comply with sections 12.2(b)(i) through (iv) and (to the extent applicable) section 12.2(c) above, as well as provide Franchisor with full disclosure of the terms of said transfer not later than three business days prior to the close of the transaction.
In addition, copies of fully executed paperwork must be delivered to Franchisor no less than three business days following the close of the transaction.
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 transfer of the franchise due to death or incapacity, a franchisee must comply with specific requirements. While the transfer itself is not subject to Bhc's right of first refusal or the standard transfer fee, the franchisee must still adhere to certain notification and disclosure obligations. Specifically, the franchisee must comply with sections 12.2(b)(i) through (iv) and (to the extent applicable) section 12.2(c).
These sections likely outline the information required about the proposed transferee, including their name and address, copies of all agreements related to the transfer, and the proposed transferee's application for approval as a successor franchisee. The franchisee must also provide full disclosure of the terms of the transfer to Bhc no later than three business days prior to the close of the transaction.
Furthermore, copies of all fully executed paperwork must be delivered to Bhc no less than three business days following the completion of the transaction. This ensures that Bhc is fully informed about the details of the transfer and has the necessary documentation for their records. It is important to note that these requirements apply specifically to transfers due to death or incapacity, and subsequent transfers by heirs or representatives may be subject to additional fees and restrictions.