How long does Bhc Franchisor have to approve or disapprove a proposed assignment after receiving all necessary information?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Within 60 days after the receipt of all necessary information and documentation required pursuant to section 12.2(b) above, or as specified by other written agreement between Franchisor and Master Franchisee, Franchisor will notify Master Franchisee of the approval or disapproval of the proposed Assignment by Master Franchisee.
The notice will be in writing and delivered to Master Franchisee by business courier in accordance with section 16.1 hereof.
Should Franchisor elect not to exercise Franchisor's right of first refusal, or should such right of first refusal be inapplicable, as herein provided, Franchisor's consent to the proposed Assignment by Master Franchisee will be deemed approved, unless disapproved by Franchisor in writing and for reasons permitted by the law governing this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisor has 60 days to notify the master franchisee of the approval or disapproval of a proposed assignment after receiving all necessary information and documentation. This timeframe applies as long as there is no other written agreement specifying a different period between Bhc and the master franchisee.
This 60-day period is crucial for a master franchisee looking to transfer their franchise rights. During this time, Bhc will evaluate the proposed assignee and the terms of the assignment. The master franchisee should ensure that all required information is submitted promptly to avoid delays in the approval process. Missing or incomplete documentation could extend the review period, potentially jeopardizing the transfer.
If Bhc does not disapprove the assignment within the 60-day window and does not exercise its right of first refusal, the assignment is considered approved. This provides a degree of certainty for the master franchisee. However, the disapproval must be in writing and based on legally justifiable reasons. This clause protects the master franchisee from arbitrary denials.
It is important to note that this 60-day period applies specifically to assignments by master franchisees. The document also mentions a separate process for relocation requests, which have a shorter 20-business-day approval window. Franchisees should be aware of these different timelines depending on the type of request they are submitting to Bhc.