What is the initial step a Bhc Master Franchisee must take before any assignment of the franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Prior to any Assignment by Master Franchisee, Master Franchisee must notify Franchisor of Master Franchisee's intent to sell, transfer or assign the Franchise, all (or substantially all) the assets of the BHC Restaurant, or a controlling or non- controlling interest in Master Franchisee (if an entity). The notice must be in writing, delivered to Franchisor in accordance with section 16.1 hereof and include the following:
(i) the proposed transferee's name and address;
(ii) a copy of all agreements related to the sale, assignment, or transfer of the Franchise, the assets of the BHC Restaurant, or the controlling interest in Master Franchisee (if an entity); and
(iii) the proposed transferee's application for approval to become the successor Master Franchisee (this application must include all forms, financial disclosures and related information generally used by Franchisor when interviewing prospective new Master Franchisees, if Franchisor makes those forms available to Master Franchisee.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee who intends to sell, transfer, or assign their franchise must first notify Bhc of their intent. This notification must be in writing and delivered to Bhc according to the guidelines in section 16.1 of the agreement.
The written notice must include specific information about the proposed transaction. This includes the name and address of the potential transferee, a copy of all agreements related to the sale, assignment, or transfer of the franchise assets, and the proposed transferee's application for approval to become the successor Master Franchisee. The application should include all forms, financial disclosures, and related information that Bhc generally uses when interviewing prospective new Master Franchisees, if Bhc makes those forms available.
This initial notification is a critical step in the assignment process, as it allows Bhc to assess the proposed transferee and ensure they meet the necessary qualifications and standards. It also gives Bhc the opportunity to review the terms of the transfer agreement and protect its interests in the franchise system. Failure to provide this notice and the required information could result in the rejection of the proposed assignment.