Prior to appointing any Affiliate Franchisee or Subfranchisee, what approval process must be conducted for a Bhc franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to appointing any Affiliate Franchisee or Subfranchisee or agreeing to the development of a potential BHC Restaurant, you must conduct an approval process, including background checks, to confirm that each potential Affiliate Franchisee and Subfranchisee and each potential BHC Restaurant meets all of our then-current minimum requirements for new subfranchisees and new BHC Restaurants, as the same may be amended, replaced or supplemented by us from time to time. We also reserve the right to approve any or all potential subfranchisees and potential BHC Restaurants.
In addition, prior to the commitment of your Affiliate Franchisee or one of your Subfranchisees to lease or purchase the potential premises for the development and operation of a Master Franchise BHC Restaurant within the Territory, you must conduct an approval process to confirm that the potential premises meets all of our then-current minimum requirements for the premises of new BHC Restaurants, as the same may be amended, replaced or supplemented by us from time to time. We also reserve the right to approve any or all potential premises for the development and operation of BHC Restaurants. To the extent we exercise our approval right, you must provide to us any preliminary document, proposal, plan, report, accounts and other information as we may require relating to the potential premises.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, before appointing any Affiliate Franchisee or Subfranchisee, the franchisee must conduct an approval process. This process includes background checks to ensure that each potential Affiliate Franchisee, Subfranchisee, and BHC Restaurant meets Bhc's then-current minimum requirements for new subfranchisees and restaurants. These requirements may be amended or replaced by Bhc over time.
Bhc also retains the right to approve any or all potential subfranchisees and potential BHC Restaurants. Additionally, before an Affiliate Franchisee or Subfranchisee commits to leasing or purchasing premises for a Master Franchise BHC Restaurant, the franchisee must conduct an approval process to confirm that the potential premises meet Bhc's minimum requirements for new restaurant premises. These requirements are also subject to change by Bhc.
Bhc also reserves the right to approve any or all potential premises for the development and operation of BHC Restaurants. If Bhc exercises its approval right, the franchisee must provide any preliminary documents, proposals, plans, reports, accounts, and other information related to the potential premises as required by Bhc. This ensures that all Affiliate Franchisees, Subfranchisees, and restaurant locations meet Bhc's standards and are aligned with the brand's overall strategy.