How long does a Master Franchisee have to re-establish a Bhc Franchised Business after an event causing inactivity, to avoid being deemed 'Abandoned'?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
"Abandoned" means cessation of operation of the Franchised Business for a period of five consecutive business days, without Franchisor's prior written consent. A repeated pattern of inactivity at Master Franchised BHC Restaurant for periods of less than five consecutive business days may result in the Franchised Business being deemed Abandoned by Master Franchisee if in Franchisor's judgment such inactivity adversely impacts the Franchised Business. However, Master Franchised BHC Restaurant will not be deemed Abandoned if the inactivity is due to natural disasters or other matters reasonably beyond Master Franchisee's control, provided that Master Franchisee gives Franchisor notice of any such closure within five business days after the initial occurrence of the event resulting in such inactivity, and Master Franchisee acknowledges in writing that such inactivity is due to one of the foregoing causes, and provided further that Master Franchisee re-establish the Franchised Business and be fully operational within 180 days after the initial occurrence of the event resulting in such inactivity, or such longer period as Franchisor may permit.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee has 180 days to re-establish a Franchised Business after an event causing inactivity that is beyond their control, such as natural disasters. To avoid the business being deemed 'Abandoned', the Master Franchisee must also provide written notice to Bhc within five business days of the event that caused the inactivity. The Master Franchisee must also acknowledge in writing that the inactivity is due to the covered event.
Bhc may permit a longer period for re-establishment at its discretion. If the Master Franchisee fails to meet these conditions, Bhc could consider the franchise 'Abandoned,' leading to potential penalties or termination of the franchise agreement. This clause ensures that franchisees actively manage their business and promptly address any issues that may arise, while also providing a reasonable timeframe for recovery from unforeseen circumstances.
This requirement is fairly standard in the franchise industry, as franchisors need to protect their brand and ensure consistent operation across all locations. The specific timeframes and conditions, however, can vary. Prospective Bhc franchisees should carefully note these requirements and consider their ability to comply, especially in regions prone to natural disasters or other disruptions.