What specific agreements related to the sale must be provided to Bhc when a franchisee intends to transfer their franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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, a franchisee must provide specific agreements to Bhc when intending to transfer their franchise. Prior to any assignment, the franchisee must notify Bhc in writing of their 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 the franchisee (if an entity).
The notification to Bhc must include several key items. First, the franchisee must provide the proposed transferee's name and address. Critically, the franchisee must also include 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 the franchisee (if an entity). Finally, the franchisee must include the proposed transferee's application for approval to become the successor franchisee. This application should encompass all forms, financial disclosures, and related information generally used by Bhc when interviewing prospective new franchisees, assuming Bhc makes these forms available to the franchisee.
If Bhc's forms for new franchisees are not readily available, the franchisee must request that Bhc deliver the forms via business courier within 15 calendar days. After receiving the transferee's application, Bhc will notify both the franchisee and the proposed transferee in writing regarding any additional information or documentation needed to complete the transfer application. Similarly, if Bhc's standards for approving new or renewing franchisees are not readily available to the franchisee, Bhc will communicate these standards to the franchisee within 15 calendar days of the notification of intent to transfer.