What rights does Bhc Franchisor have regarding access to the franchisee's restaurant during leasehold improvements?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
to Franchisee, including any warranty as to merchantability or fitness for any particular purpose. Franchisor is not responsible for delays in the leasehold improvement, equipping or decoration of the Franchised BHC Restaurant or for any loss resulting from the Franchised BHC Restaurant design or leasehold
improvement since Franchisor has no control over the landlord or developer and numerous leasehold improvement-related problems which could occur, consequently delaying the opening of Franchisee's Franchised BHC Restaurant. Franchisor must approve in writing any and all changes in the Franchised BHC Restaurant plans prior to leasehold improvement of the Franchised BHC Restaurant or the implementation of such changes.
- (f) Franchisor must have access to Franchisee's Franchised BHC Restaurant while work is in progress. Franchisor may make video records of leasehold improvement in process and may require such reasonable alterations to or modifications in the leasehold improvement of the Franchised BHC Restaurant that Franchisor deems necessary. Franchisee's failure to promptly commence and diligently complete the design, leasehold improvement, inventorying, equipping, and opening of the Franchised BHC Restaurant will be a material breach of this Agreement. Before the Franchised BHC Restaurant opens to retail customers and before final inspections by any governmental agency, Franchisor will visit the site of Franchised BHC Restaurant for three (3) on-site visits and complete a final "walk through" inspection of the Fran
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc has specific rights regarding access to a franchisee's restaurant during leasehold improvements. Bhc must have access to the franchised restaurant while work is in progress. This access allows Bhc to oversee the construction and ensure it aligns with their standards.
Bhc can also make video records of the leasehold improvement process. Furthermore, Bhc can require reasonable alterations or modifications to the leasehold improvement if they deem it necessary. This provision ensures that the restaurant's design and construction meet Bhc's requirements and brand standards.
A franchisee's failure to promptly start and diligently complete the design, leasehold improvements, inventorying, equipping, and opening of the franchised Bhc restaurant constitutes a material breach of the franchise agreement. Before the restaurant opens to the public and before final inspections by any governmental agency, Bhc will conduct three on-site visits, perform a final walk-through inspection, and issue a written consent to open. The franchisee is responsible for an inspection fee of $600, in addition to covering accommodation, transportation, meals, daily allowances, and other costs for Bhc's personnel during these visits, up to three times per restaurant.