How long does Bhc have to notify the Master Franchisee of the approval or disapproval of the 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, Bhc has 60 days to notify the Master Franchisee of the approval or disapproval of a proposed assignment. This 60-day period starts after Bhc receives all necessary information and documentation required, or as specified by a written agreement between Bhc and the Master Franchisee. The notification must be in writing and delivered via business courier.
If Bhc chooses not to exercise its right of first refusal, or if that right doesn't apply, Bhc's consent to the proposed assignment is considered approved unless Bhc disapproves it in writing for legally permissible reasons. This provision ensures that the Master Franchisee receives a timely decision regarding the proposed assignment, allowing them to proceed accordingly.
This timeframe is important for a prospective Master Franchisee because it sets clear expectations for how long the approval process will take. Knowing this timeline helps the Master Franchisee plan their business activities, especially when considering selling or transferring their franchise. The written notification requirement also ensures there is a clear record of Bhc's decision, reducing potential misunderstandings or disputes.