How long does the Bhc Franchisor have to respond to a Master Franchisee's notice of a proposed assignment?
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 a specific timeframe to respond to a Master Franchisee's notice of a proposed assignment. After receiving the Master Franchisee's written notice, Bhc has 60 days to notify the Master Franchisee of the approval or disapproval of the proposed assignment, assuming all necessary information and documentation have been provided. This notification must be in writing and delivered via business courier.
Bhc's response can take the form of either approving or disapproving the assignment. If Bhc chooses not to exercise its right of first refusal, and that right is not applicable, the Master Franchisee's proposed assignment is considered approved unless Bhc provides a written disapproval with legally justifiable reasons.
It is important for prospective Master Franchisees to understand this timeline, as delays or lack of response within this period could impact their ability to transfer the franchise. Master Franchisees should ensure they provide all required documentation promptly to facilitate a timely review by Bhc. This process is typical in franchising, as franchisors want to ensure that any new Master Franchisee meets their standards and is a good fit for the system.