What is the typical geographic size of a Bhc Development Area?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
If you enter into an MFA with us, we will not establish or franchise anyone else to establish any BHC Restaurant in the Development Area up to the earlier of: (i) the expiration or termination of the MFA. The Development Area generally consists of a city or a portion of a city. Captive locations will be excluded from your Designated Area, and we have the right to develop or franchise the following captive locations: (1) military bases; (2) public transportation facilities; (3) sports facilities, including race tracks; (4) student unions or other similar buildings on college or university campuses; (5) amusement and theme parks; (6) malls; (7) special events; (8) hospitals; (9) hotel, resort, or other lodging facility; (10) state or national parks; (11) exhibition hall; conference facility or convention center; (12) casino or gambling establishment; (13) esports events and venues; (14) street fairs; (15) delivery facilities (e.g.,, ghost kitchens) or (16) any similar area to the sites referenced herein (individually and collectively, "Captive Location(s)).We may not alter the Development Area without your written agreement. However, we may
terminate the MFA if you (i) fail to meet the Development Schedule; (ii) fail to comply with any other terms and conditions of the MFA; (iii) make or attempt to make a transfer or assignment in violation of the MFA; or (iv) fail to comply with the terms and conditions of any individual MFA or of any other agreement to which you and we or our affiliates are parties.
Source: Item 12 — Territory (FDD pages 38–39)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Development Area granted to a Master Franchisee generally consists of a city or a portion of a city. When Bhc establishes the geographic territory for a Development Area, they analyze the size, population, and number of DMAs (Designated Market Areas) within the proposed geographic territory.
Bhc may develop or franchise certain "Captive Locations" within a franchisee's Development Area. These Captive Locations include military bases, public transportation facilities, sports facilities, student unions, amusement and theme parks, malls, special events, hospitals, hotels/resorts, state/national parks, exhibition halls/conference facilities/convention centers, casinos, esports events and venues, street fairs, and delivery facilities. Bhc retains the right to market and sell Bhc products at venues other than Master Franchise Bhc Restaurants and through other channels of distribution (including the Internet), within your Territory and anywhere else.
The continuation of a franchisee's exclusive rights to develop Master Franchised Bhc Restaurants depends on meeting the development schedule outlined in the Master Franchise Agreement (MFA). The Development Area granted by the MFA cannot be altered unless both Bhc and the franchisee mutually agree. However, Bhc may terminate the MFA if the franchisee fails to meet the Development Schedule, comply with the terms of the MFA, attempt an unauthorized transfer or assignment, or fail to comply with other agreements with Bhc or its affiliates. Franchisees maintain rights to their Territory and Development Area even if the population in those geographic areas increases.