How long does Bhc have to approve or reject a proposed site after the Master Franchisee's complete submission?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) 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, Bhc has 30 days to approve or reject a proposed site after the Master Franchisee's complete submission of the requested information. If Bhc requests supplemental information, they then have 15 days after the Master Franchisee provides it to make a decision. If Bhc does not approve the site within these timeframes, the site is deemed rejected.
This is a fairly standard practice in franchising, as franchisors typically need to ensure that the proposed location meets their brand standards and has the potential to be successful. The timeframe allows Bhc to conduct its due diligence, which includes evaluating demographic information, income figures, traffic patterns, visibility, population density, competition, zoning, parking, and accessibility.
It is important to note that the Master Franchisee is responsible for reimbursing Bhc for all costs and expenses incurred during the site review process. Additionally, Bhc's approval of a site does not guarantee the success of the Bhc restaurant at that location. The Master Franchisee is also responsible for promptly proposing an alternative location if the initial site is disapproved. If a site acceptable to Bhc is not located within four months of the agreement's effective date, Bhc has the right to cancel the agreement.