What must the Master Franchisee do promptly upon signing the Bhc Franchise Agreement regarding potential sites?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Premises acceptable to Franchisor where Master Franchised BHC Restaurant will be operated must be located and secured by Master Franchisee and reviewed and consented to by Franchisor within four (4) months after the Effective Date. Upon signing this Franchise Agreement, Master
Franchisee must promptly locate one or more proposed sites which meet Franchisor's current standards and specifications. For each proposed site, Master Franchisee will submit to Franchisor certain information regarding the site that Franchisor requests. Upon receiving the information regarding a proposed site, Franchisor will review the information and either accept or reject the proposed site. For any site that Franchisor reviews, Master Franchisee must reimburse Franchisor for all costs and expenses that Franchisor incurs in reviewing the site. If Franchisor does not approve the proposed site within 30 days after Master Franchisee's complete submission of the requested information (or 15 days after Master Franchisee provides any supplemental information Franchisor requests), the site will be deemed rejected. If Franchisor disapproves, Master Franchisee must promptly propose an alternative location. Franchisor does not locate sites for Master Franchisee. However, Franchisor may, without, obligation, assist Master Franchisee in locating or evaluating a site for a reasonable fee. If Master Franchisee 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.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, upon signing the Franchise Agreement, the Master Franchisee must promptly locate one or more proposed sites that meet Bhc's current standards and specifications. For each proposed site, the Master Franchisee is required to submit specific information requested by Bhc for review.
The Master Franchisee is responsible for the costs Bhc incurs while reviewing potential sites. If Bhc does not approve a proposed site within 30 days after the complete submission of the requested information, or within 15 days after the submission of any supplemental information, the site is considered rejected. If a site is disapproved, the Master Franchisee must promptly propose an alternative location.
Bhc does not locate sites for the Master Franchisee but may offer assistance in locating or evaluating a site for a reasonable fee, without obligation. If the Master Franchisee fails to locate a site acceptable to Bhc within four months after the Effective Date of the agreement, Bhc reserves the right to cancel the agreement due to the Master Franchisee's failure to find an acceptable site.