Can a repeated pattern of inactivity for less than five consecutive business days result in a Bhc franchise being deemed 'Abandoned'?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
"Abandoned" means cessation of operation of the Franchised Business for a period of five consecutive business days, without Franchisor's prior written consent. A repeated pattern of inactivity at Franchisee's Franchised BHC Restaurant for periods of less than five consecutive business days may result in the Franchised Business being deemed Abandoned by Franchisee if in Franchisor's judgment such inactivity adversely impacts the Franchised Business. However, Franchisee's Franchised BHC Restaurant will not be deemed Abandoned if the inactivity is due to natural disasters or other matters reasonably beyond Franchisee's control, provided that Franchisee gives Franchisor notice of any such closure within five business days after the initial occurrence of the event resulting in such inactivity, and Franchisee acknowledges in writing that such inactivity is due to one of the foregoing causes, and provided further that Franchisee re-establish the Franchised Business and be fully operational within 180 days after the initial occurrence of the event resulting in such inactivity, or such longer period as Franchisor may permit.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a repeated pattern of inactivity for less than five consecutive business days may lead to the franchise being deemed 'Abandoned'. Specifically, if Bhc judges that the inactivity adversely impacts the Franchised Business, it may consider the franchise abandoned. This is in contrast to a cessation of operation for five consecutive business days, which is also defined as 'Abandoned'.
This clause provides Bhc with some discretion to act if a franchisee repeatedly closes for short periods, even if those closures don't individually meet the five-day abandonment threshold. This is designed to protect the Bhc brand and ensure consistent operation. It is important to note that the franchisee's BHC Restaurant will not be deemed Abandoned if the inactivity is due to natural disasters or other matters reasonably beyond Franchisee's control, provided that Franchisee gives Franchisor notice of any such closure within five business days after the initial occurrence of the event resulting in such inactivity, and Franchisee acknowledges in writing that such inactivity is due to one of the foregoing causes, and provided further that Franchisee re-establish the Franchised Business and be fully operational within 180 days after the initial occurrence of the event resulting in such inactivity, or such longer period as Franchisor may permit.
For a prospective franchisee, this means that consistent and reliable operation is crucial. While occasional closures due to circumstances beyond their control may be accommodated, a pattern of frequent short-term closures could be grounds for Bhc to take action. Franchisees should maintain open communication with Bhc regarding any operational challenges to avoid potential disputes over whether the business is considered abandoned.
It is also important to note the conditions under which a BHC Restaurant will not be deemed abandoned. These include instances of natural disasters or other events beyond the franchisee's control. In such cases, the franchisee must notify Bhc within five business days and provide written acknowledgment of the cause. Furthermore, the franchisee must re-establish full operations within 180 days, although Bhc may allow a longer period. This clause offers some protection to franchisees facing unforeseen circumstances, but it also places the onus on them to communicate promptly and take steps to resume operations as soon as possible.