factual

What section of the Bhc agreement outlines how notices should be delivered?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

by operation of law or otherwise, in any manner (collectively, "Assignment by Franchisee"), without Franchisor's prior written consent and, except for any transfer of a non-controlling interest, subject to Franchisor's right of first refusal 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 Franchisee is not cumulative and will not apply to any subsequent assignments, in respect of each of which Franchisee must comply with this section 12.2.

  • (b) Prior to any Assignment by Franchisee, Franchisee must notify Franchisor of Franchisee's intent to sell, transfer or assign the Franchise, all (or substantially all) the assets of the Franchised BHC Restaurant, or a controlling or non- controlling interest in 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 Franchised BHC Restaurant, or the controlling interest in Franchisee (if an entity); and
    • (iii) the proposed transferee's application for approval to become the successor franchisee (this application must include all forms, financial disclosures and related information generally used by Franchisor when interviewing prospective new franchisees, if Franchisor makes those forms available to Franchisee. If the forms are not readily available, Franchisee must request that Franchisor deliver the forms to 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, 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 franchisees are not readily available to Franchisee when Franchisee notifies Franchisor of Franchisee's intent to sell, transfer, or assign the Franchise, all or substantially all of the assets of the Franchised BHC Restaurant, or a controlling or non-controlling interest in Franchisee (if an entity), Franchisor will communicate the standards to Franchisee within 15 calendar days.

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, section 16.1 outlines how notices should be delivered. For a franchisee looking to assign their franchise, they must provide written notice to Bhc according to section 16.1. If Bhc does not readily have the standards for approving new or renewing franchisees, they will communicate those standards to the franchisee within 15 calendar days.

For notices between the franchisee and Bhc, these are considered given the earlier of either the next business day after being deposited with a reliable overnight courier, properly addressed and marked, or when delivered in person by an agent of the sending party. Any changes to the addresses listed in section 16.1(a) must be sent to the other party as soon as possible after the change occurs via a reliable overnight courier.

Furthermore, any notices sent to the franchisee that include a statement of intent to terminate or not renew the franchise must provide the reasons why and the effective date of such termination, nonrenewal, or expiration. These stipulations ensure both parties are clearly informed and have a documented method for important communications, which is a fairly standard practice in franchising to avoid disputes.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.