Can a transferee operate a transferred Bhc restaurant before Bhc accepts them in writing?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) In the event of a Transfer of Franchisee's rights, duties, and obligations under this Agreement (which must be done in full compliance with section 12.2 of this Agreement), the transferee's key personnel must be trained by Franchisor as a condition of Franchisor's consent to such Transfer. The transferred Franchised BHC Restaurant may not be operated by the transferee until Franchisor accepts the transferee in writing as being qualified to operate the Franchised BHC Restaurant and the Franchised Business and Franchisor has otherwise consented to the Transfer in accordance with this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a transferee cannot operate a transferred Bhc restaurant until Bhc provides written acceptance of the transferee's qualifications. Specifically, the transferee's key personnel must complete training with Bhc as a prerequisite for Bhc's consent to the transfer.
This requirement ensures that the new operator is adequately trained and qualified to maintain Bhc's standards. It protects the brand's reputation and operational consistency. The written acceptance from Bhc serves as an official confirmation that the transferee has met all necessary qualifications and training requirements.
For a prospective franchisee, this means that if they plan to sell their Bhc franchise, the sale is contingent upon the buyer meeting Bhc's standards and receiving formal approval. The new owner will need to undergo training, and the restaurant cannot operate under new management until Bhc provides written consent. This process helps to maintain the quality and consistency of the Bhc brand across all locations, but it could also potentially delay or complicate the transfer process.