Is Bhc obligated to assist the franchisee in the site selection process?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Franchisor may, but is not obligated to, assist Franchisee in the site selection process.
However, Franchisor reserves the sole right of final review and consent to any location of the Franchised BHC Restaurant.
Franchisor uses available demographic information to evaluate the site and the area in which it is located, and analyze area income figures, traffic patterns, visibility, population density, competition, zoning, parking, accessibility, and other related, relevant circumstances.
Franchisor's final review and consent to the location of Franchisee's Franchised BHC Restaurant is not a guarantee that a BHC business can be successfully operated there or anywhere else.
- (g) Unless otherwise agreed to in writing by Franchisee and Franchisor, Franchisee has the sole responsibility for locating, securing, and obtaining suitable premises for Franchisee's Franchised BHC Restaurant.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc is not obligated to assist franchisees in the site selection process. The FDD states that Bhc 'may, but is not obligated to, assist Franchisee in the site selection process.' However, Bhc retains the sole right of final review and consent to any location. Bhc uses available demographic information to evaluate potential sites, analyzing factors such as area income, traffic patterns, visibility, population density, competition, zoning, parking, and accessibility. Franchisees are generally responsible for locating, securing, and obtaining suitable premises for their Franchised Bhc Restaurant, unless otherwise agreed to in writing with Bhc.
While Bhc does not locate sites for the franchisee, they may assist in locating or evaluating a site for a reasonable fee. The franchisee is responsible for reimbursing Bhc for all costs and expenses incurred in reviewing the site. If Bhc does not approve a proposed site within 30 days after the franchisee's complete submission of requested information (or 15 days after supplemental information), the site is deemed rejected, and the franchisee must propose an alternative location.
Prospective franchisees should note that Bhc's final review and consent to a location does not guarantee the success of the business at that site. Additionally, franchisees are responsible for employing architects, designers, and engineers to adapt the sample plans and specifications for the restaurant, and for managing all licensing-related matters. The franchisee is also responsible for acquiring all necessary permits and licenses.