Are Bhc Master Franchisee transfers to heirs after death subject to the standard Bhc transfer fee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) No Transfer under this section 12.4 will be subject to (i) Franchisor's right of first refusal set forth in section 12.3 hereof or (ii) the Transfer Fee set forth in section 12.2(b)(vii) above, although such refusal right and Transfer Fee will be applicable to any subsequent Transfer by Master Franchisee's (or a Majority Equity Owner's) heirs, personal representatives, or conservators. However, Master Franchisee must comply with sections 12.2(b)(i) through (iv) and (to the extent applicable) section 12.2(c) above, as well as provide Franchisor with full disclosure of the terms of said transfer not later than three business days prior to the close of the transaction. In addition, copies of fully executed paperwork must be delivered to Franchisor no less than three business days following the close of the transaction.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a transfer of the Master Franchise Agreement to a spouse, parent, or adult child due to the death or legal incapacity of the Master Franchisee or a Majority Equity Owner is not subject to the standard transfer fee. This is provided that a qualified and trained General Manager remains employed at the Bhc Restaurant, or another responsible management employee or agent of the Master Franchisee satisfactorily trained by Bhc will be responsible for the Franchised Business.
However, the transfer must occur as soon as practicable, but no more than 270 days after the date of death, according to the deceased's will or the laws of intestacy. Adequate provision must also be made for the management of the franchised business. If Bhc determines that there is no imminent sale to a qualified successor or no heir capable of operating the franchise, Bhc may operate the BHC Restaurant on the Master Franchisee's behalf for up to 90 days, renewable as Bhc deems necessary for up to one year. In this case, the Master Franchisee's estate must pay the interim manager's salary, transportation, lodging, related living expenses, and a management administration fee of 15%.
While the initial transfer to heirs is exempt from the transfer fee, any subsequent transfer by the heirs, personal representatives, or conservators will be subject to the transfer fee. The Master Franchisee must still comply with certain requirements, including providing full disclosure of the terms of the transfer to Bhc no later than three business days before the transaction and delivering copies of fully executed paperwork to Bhc no less than three business days after the transaction.