How long does Bhc have to approve or reject a proposed site after the Master Franchisee provides supplemental information?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Premises acceptable to Franchisor where Master Franchised BHC Restaurant will be operated must be located and secured by Master Franchisee and reviewed and consented to by Franchisor within four (4) months after the Effective Date. Upon signing this Franchise Agreement, Master
Franchisee must promptly locate one or more proposed sites which meet Franchisor's current standards and specifications. For each proposed site, Master Franchisee will submit to Franchisor certain information regarding the site that Franchisor requests. Upon receiving the information regarding a proposed site, Franchisor will review the information and either accept or reject the proposed site. For any site that Franchisor reviews, Master Franchisee must reimburse Franchisor for all costs and expenses that Franchisor incurs in reviewing the site. If Franchisor does not approve the proposed site within 30 days after Master Franchisee's complete submission of the requested information (or 15 days after Master Franchisee provides any supplemental information Franchisor requests), the site will be deemed rejected. If Franchisor disapproves, Master Franchisee must promptly propose an alternative location. Franchisor does not locate sites for Master Franchisee. However, Franchisor may, without, obligation, assist Master Franchisee in locating or evaluating a site for a reasonable fee. If Master Franchisee has not located a site for the Franchised BHC Restaurant that is acceptable to Franchisor within four (4) months after the Effective Date, Franchisor may cancel this Agreement on the basis of Master Franchisee's failing to find an acceptable site.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisor has a limited time frame to review and respond to proposed sites for a Master Franchisee's BHC Restaurant. Specifically, after the Master Franchisee submits all the initially requested information for a site, Bhc has 30 days to either approve or reject it.
However, if Bhc requests additional or supplemental information regarding the proposed site, the review period is shortened. In this case, Bhc has 15 days after the Master Franchisee provides the supplemental information to make a decision on whether to approve or reject the site. If Bhc does not respond within these specified timeframes, the site is automatically deemed rejected.
This timeline is important for prospective Master Franchisees because it sets clear expectations for the site selection process. The Master Franchisee needs to be aware of these deadlines to ensure they can secure a suitable location within the four-month timeframe stipulated in the Franchise Agreement. Failure to secure an approved site within this period could lead to the termination of the agreement by Bhc.