What training is required for the transferee's key personnel as a condition of the Bhc Franchisor's consent to a Transfer of Master Franchisee's rights, duties, and obligations?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
erm of the then current form of Franchise Agreement;
- (v) Master Franchisee must have complied fully as of the date of any such Assignment by Master Franchisee with all of Master Franchisee's material obligations to Franchisor, whether under this Agreement or any other agreement, arrangement or understanding with Franchisor;
- (vi) Master Franchisee's Assignee agrees (A) a General Manager successfully trained by Franchisor must at all times be employed to operate the BHC Restaurant and (B) Franchisor's Initial Training program described in section 6.1 hereof and any other training or orientation programs then required by Franchisor will be satisfactorily completed by other necessary personnel within 30 days after the execution by Master Franchisee's Assignee of a Franchise Agreement, provided, however, Master Franchisee's Assignee must also agree to pay for all expenses related to this training, such as travel (at the rate in effect at the time of transfer); and
- (vii) upon approval of the transfer, Master Franchisee pays Franchisor a nonrefundable "Transfer Fee" of 100% of Franchisor's then-current Initial Franchise Fee per BHC Restaurant
- (d) Master Franchisee does not have a right to pledge, encumber, hypothecate or otherwise give any third party a security interest in this Agreement in any manner whatsoever (except that with Franchisor'
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a Master Franchisee transfers their rights, duties, and obligations, the transferee's key personnel must undergo training by Bhc as a prerequisite for Bhc's approval of the transfer. The transferee cannot operate the BHC Restaurant until Bhc confirms in writing that the transferee is qualified to manage the BHC Restaurant and the franchised business, and Bhc has consented to the transfer.
This requirement ensures that the new management team is adequately prepared to maintain Bhc's standards and operational procedures. It protects the brand's reputation and ensures consistency across all franchised locations. The transferee will need to allocate time and resources for their key personnel to attend and complete the necessary training.
Furthermore, if a Master Franchisee assigns their rights, the assignee must ensure that a General Manager, successfully trained by Bhc, is always employed to operate the BHC Restaurant. Additionally, the assignee's other necessary personnel must satisfactorily complete Bhc's Initial Training program and any other required training or orientation programs within 30 days of executing the Franchise Agreement. The assignee is responsible for covering all expenses related to this training, including travel costs at the prevailing rate at the time of transfer.