What is the maximum length of an extended cure period that Bhc may grant to a Master Franchisee?
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 Master 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 su
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 a Master Franchisee an extended period to cure a breach instead of terminating the agreement. This is at Bhc's sole discretion and must be in writing. The maximum extended cure period cannot exceed six months from the last day of the cure period that was originally applicable.
This means that if a Master Franchisee fails to meet certain obligations under the agreement, Bhc can choose to give them more time to fix the problem instead of immediately terminating the franchise agreement. However, this extended cure period is not indefinite; it has a strict limit of six months beyond the initial cure period.
For a prospective Master Franchisee, this clause offers a degree of protection. If a curable breach occurs, Bhc might be willing to work with them to resolve the issue. However, it's important to note that Bhc is not obligated to grant an extension, and the extension will not be longer than six months. Franchisees should aim to remedy any breaches within the original cure period to avoid relying on Bhc's discretion.