How much advance written notice is required when a Bhc Master Franchisee or Sublicensee desires to relocate a Bhc Restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
8.6 Relocation of Master Franchised BHC Restaurant.
- (a) If Master Franchisee or a Sublicensee desires to relocate the BHC Restaurant, Master Franchisee or Sublicensee may do so provided that not less than 90 days prior to the desired date of relocation (unless prior notice is impractical because of a required relocation in which event notice must be given as soon as possible), Master Franchisee makes a written request for consent to relocate, describing the reasons for the relocation and providing complete written details respecting any proposed new location.
- (b) Within 20 business days after receiving Master Franchisee's request, Franchisor will either approve or disapprove in writing such closure or relocation. If Franchisor disapproves a proposed relocation, Master Franchisee may request an alternative proposed new location for Master Franchised BHC Restaurant pursuant to the provisions of this section 8.6.
- (c) Master Franchisee and the landlord may be required to execute a rider to Master Franchisee's lease for the new location for the BHC Restaurant (or other agreement or written understanding) that (i) grants Franchisor an option to assume Master Franchisee's position as lessee under the lease for the relocated BHC Restaurant premises if Master Franchisee is in material breach of either the lease for the relocated BHC Restaurant premises (including an obligation of the landlord to notify Franchisor if Master Franchisee is in such breach) or this Agreement, (ii) grants Franchisor the right to assign the lease to a bona fide Master Franchisee of the System after assuming the lease and (iii) requires the landlord to fully cooperate with Franchisor in completing de-identification of the relocated BHC Restaurant in the event this Agreement is terminated or expires without being renewed and Franchisor does not exercise its option to assume the lease for the relocated BHC Restaurant premises.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee or Sublicensee must provide written notice at least 90 days before the desired relocation date if they wish to relocate a Bhc Restaurant. This notice must include the reasons for the relocation and complete details about the proposed new location. However, if prior notice is impractical due to a required relocation, notice must be given as soon as possible.
After receiving the relocation request, Bhc has 20 business days to either approve or disapprove the closure or relocation in writing. If Bhc disapproves, the Master Franchisee can propose an alternative new location.
Furthermore, Bhc may require the Master Franchisee and their landlord to execute a rider to the lease for the new location. This rider would grant Bhc an option to assume the Master Franchisee's position as lessee if the Master Franchisee breaches the lease or the franchise agreement. It also allows Bhc to assign the lease to another franchisee and requires the landlord to cooperate with Bhc in de-identifying the restaurant if the agreement is terminated and Bhc does not assume the lease.