When should the Landlord send copies of default notices to the Franchisor for the Bhc restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
fter receiving Franchisee's request, Franchisor will either approve or disapprove in writing such closure or relocation. If Franchisor disapproves a proposed relocation, Franchisee may request an alternative proposed new location for Franchisee's Franchised BHC Restaurant pursuant to the provisions of this section 8.6. Notwithstanding the foregoing, Franchisee shall be deemed to be in material default if Franchisee fails to open the Franchised BHC Restaurant at the new location within closure of the Franchised BHC Restaurant at the prior location.
- (c) Franchisee and the landlord may be required to execute a rider to Franchisee's lease for the new location for the Franchised BHC Restaurant (or other agreement or written understanding) that (i) grants Franchisor an option to assume Franchisee's position as lessee under the lease for the relocated Franchised BHC Restaurant premises if Franchisee is in material breach of either the lease for the relocated Franchised BHC Restaurant premises (including an obligation of the landlord to notify Franchisor if Franchisee is in such breach) or this Agreement, (ii) grants Franchisor the right to assign the lease to a bona fide franchisee of the System after assuming the lease and (iii) requires the landlord to fully cooperate with Franchisor in completing de-identification of the relocated Franchised BHC Restaurant in the event this Agreement is terminated or expires without being renewed and Franchisor does not exercise its option to assume the lease for the relocated Franchised BHC Restaurant premises.
8.7 Record Keeping and Reporting Requirements.
- (a) Not later than 10 business days after Franchisor requests them, Franchisee must submit to Franchisor financial or statistical reports, records, statements, or information as required in the Operations Manual or otherwise by Franchisor in writing. All financial or statistical information Franchisee provides to Franchisor must be accurate and correct in all material respects.
- (b) Within 90 days after the end of each of Franchisee's fiscal years (or any permitted extension for filing same), Franchisee must submit to Franchisor a copy of the Schedule C (IRS Form 1040 Profit and Loss Statement) or equivalent portion of Franchisee's federal tax return that relates to the Franchised BHC Restaurant and Franchisee's operation of the Franchised Business.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the landlord may be obligated to notify Bhc if the franchisee is in breach of their lease agreement. Specifically, if a franchisee desires to relocate their Bhc restaurant, the lease agreement for the new location may require the landlord to notify Bhc if the franchisee is in material breach of the lease. This obligation ensures Bhc is aware of any potential issues with the franchisee's lease compliance, particularly in the context of relocation.
For Master Franchisees, a similar condition applies. If a Master Franchisee or Sublicensee wishes to relocate a Bhc restaurant, the lease agreement for the new location might include a requirement for the landlord to notify Bhc of any material breach of the lease by the Master Franchisee. This provision is designed to protect Bhc's interests by keeping them informed of any lease violations that could impact the operation of the relocated restaurant.
In addition, the landlord agrees to notify both the tenant and Bhc of any changes in the landlord's mailing address to which notices should be sent. This ensures that all parties, including Bhc, receive important communications related to the lease agreement. Furthermore, in the event of conflicting notices from the tenant and Bhc, the notices from Bhc will prevail, highlighting the importance of Bhc's communication with the landlord.