When must the Master Franchisee commence operation of the Franchised Business at the Bhc Restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee has not located a site for the Franchised BHC Restaurant that is acceptable to Franchisor within four (4) months after the Effective Date, Franchisor may cancel this Agreement on the basis of Master Franchisee's failing to find an acceptable site.
- (b) Master Franchisee must build out the Franchised BHC Restaurant (and commence operation of the Franchised Business there) within ten (10) months after Franchisor approves the BHC Restaurant premises, using architects, project managers, contractors, subcontractors, architectural plans, and key equipment suppliers reasonably acceptable to Franchisor. Master Franchisee must commence operation of the Franchised Business at the Franchised BHC Restaurant as soon as practicable after Master Franchisee's receipt of a certificate of occupancy (or equivalent document) from the responsible local government authority.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must start operating their Bhc restaurant as soon as possible after receiving a certificate of occupancy (or an equivalent document) from the local government.
Bhc requires the Master Franchisee to build out the restaurant and begin operations within ten months after Bhc approves the restaurant premises. This build-out must use architects, project managers, contractors, architectural plans, and key equipment suppliers that are reasonably acceptable to Bhc.
Bhc specifies that if the Master Franchisee hasn't started operating the restaurant within fourteen months after the effective date of the agreement, Bhc has the right to terminate the agreement with written notice. This clause emphasizes the importance of timely establishment and operation of the franchise after securing suitable premises approved by Bhc.
Prior to granting rights to third-party Subfranchisees, the Master Franchisee must open at least one Franchised Bhc Restaurant. The location of this restaurant will be added to the agreement as soon as it has been determined.