What is the Landlord required to do regarding default notices to the Bhc Franchisor?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
's cure period in which to cure the default or violation. If Franchisor elects to assume the Lease, the Franchisor Entity shall not be required to cure defaults and/or to begin paying rent until Landlord delivers possession of the Premises to the Franchisor Entity. At any time until Landlord delivers possession of the Premises, Franchisor shall have the right to rescind the election to assume by written notice to Landlord.
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- Termination of Franchise Agreement; Expiration or Non-Renewal of Lease. If the Franchise Agreement is terminated for any reason during the term of the Lease or any renewal or extension thereof, and if Franchisor desires to assume the Lease, Franchisor shall promptly give Landlord written notice thereof. Within 30 days after receipt of such notice, Landlord shall give Franchisor written notice specifying any defaults of Tenant under the Lease. If Franchisor elects to assume the Lease, Franchisor must cure said defaults consistent with paragraph 3 above. If the Lease contains term renewal or extension right(s) and if Tenant allows the term to expire without exercising said right(s), Landlord shall give Franchisor written notice thereof, and a Franchisor Entity shall have the option, for 30 days after receipt of said notice, to exercise the Tenant's renewal or extension right(s) on the same terms and conditions as are contained in the Lease. If a Franchisor Entity elects to exercise such right(s), it shall so notify Landlord in writing, whereupon Landlord and the Franchisor Entity shall promptly execute and deliver an agreement whereby the Franchisor Entity assumes the Lease, effective at the commencement of the extension or renewal term.
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- Access to Premises Following Expiration or Termination of Lease. Upon the expiration or termination of the Lease, Landlord will cooperate with and assist Franchisor in gaining possession of the Premises and, if the Franchisor Entity does not elect to assume the Lease for the Premises consistent with subparagraphs 3or 4above, Landlord will allow Franchisor to enter the Premises, without being guilty of trespass and without incurring any liability to Landlord except for any damages caused by Franchisor's willful misconduct or gross negligence, to remove all signs and all other items identifying the Premises as a BHC Restaurant and to make such other modifications (such as repainting) as are reasonably necessary to protect the BHC marks and system, and to distinguish the Premises from BHC Restaurants.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if the Franchise Agreement is terminated for any reason during the term of the lease, the landlord is required to provide written notice to Bhc specifying any defaults of the tenant (the franchisee) under the lease within 30 days after receiving notice from Bhc that it desires to assume the lease. This ensures Bhc is informed of any issues with the franchisee's lease obligations.
Additionally, if the lease contains term renewal or extension rights and the franchisee allows the term to expire without exercising those rights, the landlord must give written notice to Bhc. This allows a Bhc entity the option to exercise the franchisee's renewal or extension rights within 30 days of receiving the notice, maintaining the Bhc presence at the location.
Furthermore, in the event a franchisee desires to relocate their Bhc restaurant, the franchisee and landlord may be required to execute a rider to the franchisee's lease that includes an obligation for the landlord to notify Bhc if the franchisee is in breach of the lease for the relocated premises. This ensures Bhc is aware of any issues with the franchisee's lease obligations at the new location and can take appropriate action.