Is Bhc obligated to locate sites for the Master Franchisee?

According to Bhc's 2025 Franchise Disclosure Document, Bhc is not obligated to locate sites for the Master Franchisee. The responsibility of locating and securing premises for the Franchised Bhc Restaurant lies solely with the Master Franchisee. However, Bhc may, without obligation, assist the Master Franchisee in locating or evaluating a site, potentially for a reasonable fee.

The Master Franchisee is required to locate premises acceptable to Bhc within four months of the agreement's effective date. The Master Franchisee must submit site information to Bhc for review, and will be responsible for reimbursing Bhc for any costs incurred during the review process. Bhc has the right to either accept or reject the proposed site. If Bhc does not approve a site within 30 days of complete submission (or 15 days after supplemental information), it is deemed rejected, and the Master Franchisee must propose an alternative location.

Bhc's assistance in site selection does not guarantee the success of the Bhc business at that location. Bhc uses demographic information to evaluate potential sites, analyzing factors such as income figures, traffic patterns, population density, and competition. Ultimately, the Master Franchisee bears the risk of finding a suitable location and ensuring the success of their Bhc restaurant.