How many consecutive business days of inactivity at a Bhc restaurant are required for it to be considered '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 Franchisee's Franchised BHC Restaurant for periods of less than five consecutive business days may result in the Franchised Business being deemed Abandoned by Franchisee if in Franchisor's judgment such inactivity adversely impacts the Franchised Business. However, Franchisee's Franchised BHC Restaurant will not be deemed Abandoned if the inactivity is due to natural disasters or other matters reasonably beyond Franchisee's control, provided that Franchisee gives Franchisor notice of any such closure within five business days after the initial occurrence of the event resulting in such inactivity, and Franchisee acknowledges in writing that such inactivity is due to one of the foregoing causes, and provided further that 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 Bhc restaurant is considered 'Abandoned' if it ceases operation for five consecutive business days without the franchisor's prior written consent. This definition applies to both franchisees and master franchisees.
However, Bhc may deem a restaurant abandoned even with shorter periods of inactivity if it believes the inactivity negatively impacts the business. This clause gives Bhc some discretion in determining abandonment based on specific circumstances.
There are exceptions to the abandonment rule. If the inactivity is due to natural disasters or other events beyond the franchisee's control, and the franchisee notifies Bhc within five business days and resumes full operations within 180 days (or a longer period if permitted by Bhc), the restaurant will not be considered abandoned. This provides some protection for franchisees facing unforeseen disruptions.
It's important to note that if Bhc determines a franchise has been abandoned, it has the right to immediately terminate the franchise agreement without providing an opportunity to cure the breach. This highlights the importance of maintaining consistent operation and communicating promptly with Bhc in the event of any operational challenges.