What is the maximum length of an extended cure period that Bhc may grant to a franchisee in lieu of termination?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything contained herein to the contrary, including section 13.3(c) hereof, in those circumstances under which Franchisor has the right to terminate this Agreement, Franchisor also has the right, to be exercised in its sole discretion, to grant to Franchisee in writing only, in lieu of termination of this Agreement, an extended period of time to cure the breach which gave rise to Franchisor's right to terminate, but in no event may such extended cure period exceed six months from the last day of the cure period otherwise applicable to such breach. Franchisee acknowledges that Franchisor's election to grant an extended cure period to Franchisee will not operate as a waiver of any of Franchisor's rights hereunder.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc has the right to grant an extended cure period to a franchisee in writing, instead of terminating the franchise agreement. This decision is at Bhc's sole discretion. However, the extended cure period cannot exceed six months from the last day of the original cure period that applied to the breach.
This means that if a franchisee fails to meet certain obligations under the franchise agreement, Bhc can choose to give them more time to correct the issue rather than immediately terminating the agreement. The maximum additional time Bhc can grant is six months beyond the initial cure period.
It is important to note that Bhc's decision to grant an extended cure period does not waive any of Bhc's rights under the franchise agreement. This implies that even if Bhc allows the franchisee extra time to fix a problem, Bhc still retains the right to take further action if the franchisee fails to meet the terms of the agreement, even after the extended cure period.