Under what circumstances is a Bhc franchisee not obligated to remain open?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Franchisee's Franchised BHC Restaurant must be open on a full-time basis in accordance with the hours of operation as designated by Franchisor.
The obligation to remain open will not apply if Franchisee experiences a Force Majeure.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee is generally required to keep their BHC restaurant open on a full-time basis, adhering to the hours of operation designated by Bhc. However, this obligation to remain open is waived if the franchisee experiences a Force Majeure event.
A Force Majeure event typically refers to unforeseeable circumstances that prevent someone from fulfilling a contract. Common examples include natural disasters (like hurricanes, earthquakes, or floods), war, terrorism, government regulations, or widespread labor strikes. The specific definition of Force Majeure, and what events qualify under the Bhc franchise agreement, would be detailed elsewhere in the FDD or franchise agreement.
For a prospective Bhc franchisee, understanding what constitutes a Force Majeure event is crucial. It defines the scope of circumstances under which they can temporarily close their restaurant without being in breach of the franchise agreement. It is important to review the specific language in the franchise agreement that defines "Force Majeure" to fully understand your rights and obligations.