How many consecutive business days of failing to operate the Franchised Bhc Restaurant can lead to immediate termination?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) Franchisee Abandons the Franchise by failing to operate the Franchised BHC Restaurant for five consecutive business days during which Franchisee is required to operate the business under the terms of this Agreement, or any shorter period after which it is not unreasonable under the facts and circumstances for Franchisor to conclude that Franchisee does not intend to continue to operate the Franchise, unless such failure to operate is due to fire, flood, earthquake or other similar causes beyond Franchisee's control;
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee's failure to operate their franchised restaurant for five consecutive business days can result in immediate termination of the franchise agreement. This abandonment clause applies if the franchisee is required to operate the business under the agreement's terms. However, this termination clause is waived if the failure to operate is due to events outside of the franchisee's control, such as a fire, flood, or earthquake. The franchisee must also provide notice of the closure to Bhc within five business days of the event.
Bhc also considers a pattern of inactivity for less than five consecutive business days as abandonment if it negatively impacts the business. The franchisee must reopen and be fully operational within 180 days of the event that caused the closure, unless Bhc permits a longer period.
This clause protects Bhc from franchisees who may neglect their business, ensuring consistent operation and brand reputation. It also provides a reasonable exception for closures due to unforeseen circumstances, giving franchisees time to recover and reopen their restaurants without penalty.