What monetary and other obligations must a Bhc Master Franchisee satisfy at the time of renewal?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
r a crime involving moral turpitude, consumer fraud or any other offense that is reasonably likely, in Franchisor's judgment, to have a materially adverse effect on the Marks, the System, or the goodwill associated with the Marks or System; or
- (d) As a condition to renewing Master Franchisee's rights, duties and obligations hereunder, not later than 90 days before the end of the term that is expiring, Master Franchisee and Franchisor must sign either (i) Franchisor's then-current standard Franchise Agreement modified by addendum to remove provisions that only apply to a new Master Franchisee, such as initial franchise fee and initial training requirements ("Renewal Franchise Agreement") or (ii) an addendum to this Agreement extending its term for an additional 10 year term. IN ADDITION TO NOT GRANTING ANY ADDITIONAL RIGHTS BEYOND THOSE GRANTED IN THIS AGREEMENT, THE RENEWAL FRANCHISE AGREEMENT MAY CONTAIN OTHER TERMS THAT ARE SUBSTANTIALLY DIFFERENT FROM THOSE IN THIS AGREEMENT. The Renewal Franchise Agreement, when executed, will supersede this Agreement.
- (e) At the time of renewal, Master Franchisee must have satisfied all monetary obligations owed by Master Franchisee to Franchisor and to Franchisor's affiliates and all other material obligations under this Agreement, and Franchisor may examine Master Franchisee's books and records to verify compliance with this requirement anytime during normal business hours within 120 days of Master Franchisee's renewal date.
- (f) Before or not later than 90 days after Master Franchisee's execution of a Renewal Franchise Agreement for an additional term, Master Franchisee must make such physical modifications (i.e., remodel) to Master Franchised BHC Restaurant as are reasonably necessary so that they are substantially consistent with the then current Trade Dress and System requirements, and so that they can accommodate new BHC Products, if any. Master Franchisee must also bring Master Franchised BHC Restaurant and e
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee has several obligations to fulfill at the time of renewal. The Master Franchisee must have satisfied all monetary obligations owed to Bhc and its affiliates, as well as all other material obligations under the existing agreement. Bhc retains the right to examine the Master Franchisee's books and records to verify compliance with these requirements within 120 days of the renewal date.
In addition to settling outstanding debts and fulfilling obligations, the Master Franchisee is required to make necessary physical modifications to the Master Franchised Bhc Restaurant. These modifications, such as remodeling, must ensure that the restaurant is substantially consistent with the current trade dress and system requirements. The modifications should also accommodate any new Bhc products, if applicable. These physical updates must be completed before or within 90 days after the Master Franchisee executes the Renewal Franchise Agreement.
Furthermore, the Master Franchisee must pay Bhc a "Renewal Fee" of $40,000.00 when signing the Renewal Franchise Agreement. The Master Franchisee and Bhc must sign either Bhc's then-current standard Franchise Agreement modified by addendum to remove provisions that only apply to a new Master Franchisee or an addendum to the existing agreement extending its term for an additional 10-year term. The Renewal Franchise Agreement may contain terms that are substantially different from those in the original agreement and will supersede the original agreement upon execution.