What is the procedure for the proposed transferee to apply to become the successor Master Franchisee for Bhc?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
provided for in section 12.3 hereof, and transfer to an Affiliated Entity provided for in section 12.6 hereof. Franchisor's consent to a specific Assignment by Master Franchisee is not cumulative and will not apply to any subsequent assignments, in respect of each of which Master Franchisee must comply with this section 12.2.
(b) Prior to any Assignment by Master Franchisee, Master Franchisee must notify Franchisor of Master Franchisee's intent to sell, transfer or assign the Franchise, all (or substantially all) the assets of the BHC Restaurant, or a controlling or non- controlling interest in Master Franchisee (if an entity). The notice must be in writing, delivered to Franchisor in accordance with section 16.1 hereof and include the following:
(i) the proposed transferee's name and address;
(ii) a copy of all agreements related to the sale, assignment, or transfer of the Franchise, the assets of the BHC Restaurant, or the controlling interest in Master Franchisee (if an entity); and
(iii) the proposed transferee's application for approval to become the successor Master Franchisee (this application must include all forms, financial disclosures and related information generally used by Franchisor when interviewing prospective new Master Franchisees, if Franchisor makes those forms available to Master Franchisee. If the forms are not readily available, Master Franchisee must request that Franchisor deliver the forms to Master Franchisee by business courier in accordance with section 16.1 hereof within 15 calendar days). As soon as practicable after the receipt of the proposed transferee's application, Franchisor will notify, in writing, Master Franchisee and the proposed transferee of any additional information or documentation necessary to complete the transfer application. If Franchisor's then-existing standards for the approval of new or renewing Master Franchisees are not readily available to Master Franchisee when Master Franchisee notifies Franchisor of Master Franchisee's intent to sell, transfer, or assign the Franchise, all or substantially all of the assets of the BHC Restaurant, or a controlling or non-controlling interest in Master Franchisee (if an entity), Franchisor will communicate the standards to Master Franchisee within 15 calendar days.
(iv) a non-refundable "Transfer Review Fee" of $5,000.00, or such greater amount as is necessary to reimburse Franchisor's out of pocket costs associated with the transfer/assignment, including attorneys' fees.
(c) Within 60 days after the receipt of all necessary information and documentation required pursuant to section 12.2(b) above, or
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, before any assignment of the Master Franchise, the current Master Franchisee must inform Bhc of their intent to sell, transfer, or assign the franchise. This notification must be in writing and delivered to Bhc according to section 16.1 of the agreement.
The notification must include the proposed transferee's name and address, copies of all agreements related to the sale, assignment, or transfer of the franchise, assets, or controlling interest, and the proposed transferee's application for approval to become the successor Master Franchisee. This application should include all forms, financial disclosures, and related information that Bhc generally uses when interviewing prospective new Master Franchisees, if Bhc makes these forms available. If these forms are not readily available, the Master Franchisee must request that Bhc deliver them via business courier within 15 calendar days, as per section 16.1.
After receiving the transferee's application, Bhc will inform both the Master Franchisee and the proposed transferee of any additional required information or documentation. Additionally, if Bhc's standards for approving new or renewing Master Franchisees are not readily available to the Master Franchisee, Bhc will communicate these standards within 15 calendar days of the notification of intent to transfer. A non-refundable "Transfer Review Fee" of $5,000.00, or a greater amount necessary to cover Bhc's out-of-pocket costs, including attorney's fees, is also required. Within 60 days of receiving all necessary information, Bhc will notify the Master Franchisee of the approval or disapproval of the proposed assignment in writing, delivered via business courier as per section 16.1.