How long does the Franchisor have to notify the Master Franchisee of the approval or disapproval of the proposed assignment for a Bhc franchise?
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. This 60-day period starts after the Franchisor receives all necessary information and documentation required, as specified in section 12.2(b) of the agreement, or as outlined in any other written agreement between Bhc and the Master Franchisee. The notification must be in writing and delivered via business courier, as detailed in section 16.1 of the agreement.
This timeframe is important for a Master Franchisee because it sets expectations for how long the approval process will take. Knowing this allows the Master Franchisee to plan accordingly when considering selling or transferring their franchise. The requirement for written notification delivered by courier ensures there is a documented record of the decision and its communication.
It's also important to note that if Bhc chooses not to exercise its right of first refusal, or if that right doesn't apply, the Master Franchisee's proposed assignment is considered approved unless Bhc specifically disapproves it in writing for legally permissible reasons. This provides a degree of assurance to the Master Franchisee that, absent specific disapproval, the assignment can proceed.
Prospective Master Franchisees should be aware of these conditions and ensure they understand what constitutes "all necessary information and documentation" to avoid delays in the approval process. They should also clarify the reasons for which Bhc can legally disapprove an assignment to fully understand their rights and obligations.