What is the timeframe a Bhc franchisee has to provide notice of closure due to events beyond their control?
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 franchisee must notify Bhc within five business days after the initial occurrence of an event that results in the closure of the restaurant due to circumstances beyond their control, such as natural disasters. The franchisee must also acknowledge in writing that the closure is due to such an event.
In addition to providing timely notice, the franchisee is expected to re-establish the Franchised Business and be fully operational within 180 days after the initial event. However, Bhc may permit a longer period for re-establishment at its discretion.
Failure to provide notice within the specified timeframe or to re-establish the business within the given period could potentially lead to the Franchised Business being deemed Abandoned by Bhc. This clause protects both the franchisee, by allowing a temporary closure without penalty under specific circumstances, and Bhc, by ensuring the franchisee remains committed to the business and resumes operations in a timely manner.