What is the maximum time period a Bhc franchisee has to re-establish their business after an event causing inactivity?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
as defined in Article 1 below) and goodwill to conduct the "Franchised Business" (as defined in Article 1 below) at a specific "Franchised BHC Restaurant" (as defined in Article 1 below and identified in Exhibit 1 attached) operated by Franchisee.
- C. Franchisor is willing to grant Franchisee a "Franchise" (as defined in section 3.1 hereof), in accordance with the provisions of this Agreement and the Operations Manual.
1. DEFINITIONS
"Abandoned" means cessation of operation of the Franchised Business for a period of five consecutive business days, without Franchisor's prior written consent. A repeated pattern of inactivity at Franchisee's Franchised BHC Restaurant for periods of less than five consecutive business days may result in the Franchised Business being deemed Abandoned by Franchisee if in Franchisor's judgment such inactivity adversely impacts the Franchised Business. However, Franchisee's Franchised BHC Restaurant will not be deemed Abandoned if the inactivity is due to natural disasters or other matters reasonably beyond Franchisee's control, provided that Franchisee gives Franchisor notice of a
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee typically has 180 days to re-establish their business after an event that causes inactivity, such as a natural disaster. This 180-day period begins from the initial occurrence of the event. The franchisee must also provide written notice to Bhc within five business days of the event.
However, Bhc may, at its discretion, permit a longer period for the franchisee to become fully operational again. This flexibility is crucial for franchisees facing significant disruptions that require more time to resolve. It is important to note that the inactivity must be due to circumstances reasonably beyond the franchisee's control.
If a franchisee fails to provide timely notice or does not re-establish the business within the specified timeframe (or extended timeframe, if granted), Bhc may deem the franchise abandoned. Abandonment can lead to termination of the franchise agreement, so it is essential for franchisees to communicate promptly with Bhc and diligently work towards resuming operations.