What is the minimum advance written notice required to renew a Bhc franchise agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
5.2 Renewal Terms.
- (a) Upon written notice delivered to Franchisor not less than 120 days before the end of the existing term hereof, Franchisee may renew its rights granted under this Agreement for additional 10-year terms commencing on the expiration date of the previous term, subject to the provisions of sections 5.2(b) through 5.2(g) below.
- (b) At the time of renewal, Franchisee must (i) then be solvent (which means that Franchisee is able to pay its debts as and when promised by Franchisee and that Franchisee has assets that are greater than its debts), (ii) not have Abandoned the Franchised BHC Restaurant, (iii) not be operating the Franchise in a manner that endangers public health or safety or materially harms the BHC brand or reputation, and (iv) not have knowingly submitted false or incomplete reports to Franchisor during the expiring term.
- (c) Notwithstanding section 5.2(a) above, Franchisor is not obligated to renew Franchisee's rights granted under this Agreement for an additional term if one or more of the following applies or occurs:
- (i) Franchisee gives Franchisor written notice of Franchisee's intention not to renew this Agreement at least 120 days before the expiration of the initial term or any successor term;
- (ii) Termination of this Agreement would be permitted pursuant to sections 13.1 or 13.2 hereof;
- (iii) Franchisee and Franchisor agree not to renew the Franchise Agreement;
- (iv) Franchisor withdraws from distributing its products or services through Franchises in the geographic market served by Franchisee.
- (v) At the time of renewal, Franchisee or any Principal Equity Operator has been convicted of a felony or a crime involving moral turpitude, consumer fraud or any other offense
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must provide written notice to Bhc at least 120 days before the end of the current franchise term to renew their franchise agreement. The renewal grants the franchisee rights for additional 10-year terms, beginning on the expiration date of the previous term.
However, the renewal is not guaranteed. Bhc outlines specific conditions that must be met for a franchisee to be eligible for renewal. These conditions include the franchisee being solvent, not having abandoned the BHC Restaurant, operating the franchise in a manner that does not endanger public health or harm the Bhc brand, and not having knowingly submitted false or incomplete reports to Bhc during the expiring term.
Bhc also reserves the right to deny renewal under certain circumstances, such as if the franchisee provides written notice of their intention not to renew at least 120 days before the term's expiration, if termination of the agreement would be permitted under specific sections of the agreement, or if both the franchisee and Bhc agree not to renew the franchise agreement. Additionally, Bhc may deny renewal if they withdraw from distributing their products or services through franchises in the franchisee's geographic market, or if the franchisee or any Principal Equity Operator has been convicted of certain crimes.