Which sections of the Bhc Franchise Agreement outline the franchisee's responsibilities for site development and other pre-opening requirements?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
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 Franchised BHC Restaurant and issue a written consent to open.
Any deficiencies noted by Franchisor as a result of this inspection must be corrected by Franchisee within 30 days or this Agreement may be terminated without any liability to Franchisor.
Franchisee shall be responsible for such inspection fee of USD $600, all accommodation, transportation, meals, daily allowances, and other costs and expenses for the Franchisor's personnel in connection with such visits on site but up to three times per Franchised BHC Restaurant only.
- (g) Unless otherwise agreed to in writing by Franchisee and Franchisor, Franchisee has the sole responsibility for locating, securing, and obtaining suitable premises for Franchisee's Franchised BHC Restaurant. [Item 23: Receipts]
Franchisee must commence operation of the Franchised Business at Franchisee's Franchised BHC Restaurant as soon as practicable after Franchisee's receipt of a certificate of occupancy (or equivalent document) from the responsible local government authority.
If after Franchisee has located and secured suitable premises (that Franchisor consents to) for its Franchised BHC Restaurant, Franchisee has not commenced operation of the Franchised Business within fourteen (14) months after the Effective Date, Franchisor may terminate this Agreement effective on written notice.
- (c) Franchisor may, but is not obligated to, assist Franchisee in the site selection process.
However, Franchisor reserves the sole right of final review and consent to any location of the Franchised BHC Restaurant.
Franchisor uses available demographic information to evaluate the site and the area in which it is located, and analyze area income figures, traffic patterns, visibility, population density, competition, zoning, parking, accessibility, and other related, relevant circumstances.
Franchisor's final review and consent to the location of Franchisee's Franchised BHC Restaurant is not a guarantee that a BHC business can be successfully operated there or anywhere else.
- (d) Franchisor will provide Franchisee with a sample prototype layout for the Franchised BHC Restaurant.
Franchisor will provide Franchisee a floor plan.
Franchisee must pay Franchisor for all costs and expenses that Franchisor incurs in providing the site design review fee of $2,500 ("Site Design Review Fee") and a separate site review fee of $2,000 to $4,000 ("Site Review Fee").
At Franchisee's sole expense, Franchisee must employ directly architects, designers, engineers, or others as reasonably acceptable to Franchisor to complete, adapt, modify, or substitute the sample plans and specifications for the Franchised BHC Restaurant, and review and monitor all licensing related matters.
Developer shall be solely responsible for acquiring all of the necessary permits and licenses, including but not limited to permits related to structural reinforcement, grease interceptors, and parking.
The architect must submit a complete set of final plans and specifications to Franchisor before commencing leasehold improvement of the Franchised BHC Restaurant.
[Item 23: Receipts]
- (e) Master Franchisee must use licensed general contractors, designers, vendors, and architects accepted by Franchisor before performing leasehold improvement work at Franchised BHC Restaurant.
Franchisor expressly disclaims any representation or warranty of the quality of any goods or services provided by architects, contractors, or any other persons or entities which Franchisor may refer to Master 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 the 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 the 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.
Master 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 BHC Restaurant and issue a written consent to open.
Any deficiencies noted by Franchisor as a result of this inspection must be corrected by Master Franchisee within 30 days or this Agreement may be terminated without any liability to Franchisor.
Master Franchisee shall be responsible for such inspection fee of USD$600, all accommodation, transportation, meals, daily allowances, and other costs and expenses for the Franchisor's personnel in connection with such visits on site but up to three times per Franchised BHC Restaurant only.
Source: Item 9 — Franchisee's Obligations (FDD pages 28–29)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Item 23 outlines the franchisee's responsibilities for site development and pre-opening requirements. The franchisee is solely responsible for locating, securing, and obtaining suitable premises for their Bhc restaurant, unless otherwise agreed upon in writing with Bhc. The franchisee must also ensure that their landlord executes an addendum to the lease, granting Bhc the option to assume the lease under specific conditions, such as a breach of the lease agreement.
Bhc may assist the franchisee in the site selection process but retains the final right to review and approve the location. This review includes evaluating demographic information, income figures, traffic patterns, and other relevant factors. However, Bhc's approval does not guarantee the success of the business at that location. Bhc will provide a sample prototype layout and floor plan for the restaurant. The franchisee is responsible for employing architects, designers, and engineers to adapt these plans and for managing all licensing-related matters and acquiring necessary permits.
The franchisee is responsible for paying Bhc a $2,500 Site Design Review Fee and a separate Site Review Fee ranging from $2,000 to $4,000. The franchisee must commence operations as soon as possible after receiving a certificate of occupancy. If operations do not begin within 14 months of the agreement's effective date, Bhc may terminate the agreement. The franchisee is responsible for the design, leasehold improvements, inventory, equipping, and opening of the restaurant, and failure to do so promptly is a breach of the agreement.
Before opening, Bhc will conduct three on-site visits and a final inspection, with the franchisee responsible for a $600 inspection fee, as well as covering accommodation, transportation, meals, and daily allowances for Bhc's personnel. Any deficiencies noted during the inspection must be corrected within 30 days, or the agreement may be terminated. Bhc also requires access to the restaurant during construction and may request alterations or modifications. The franchisee must use licensed contractors, designers, vendors, and architects accepted by Bhc for leasehold improvements.