Under what circumstances can a Bhc franchisee operate the Franchised Business from a location other than the franchisee's location?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ory.
3.3 Promotion and Development of Franchisee's Franchised BHC Restaurant.
Franchisee must (i) diligently and effectively promote, market, and engage in the Franchised Business at its Franchised BHC Restaurant; (ii) develop, to the best of its ability, the potential for future Franchised Business as approved by the Franchisor; and (iii) devote and focus a substantial portion of Franchisee's attentions and efforts to such promotion and development.
3.4 Extent of Grant.
- (a) Franchisee understands and agrees that Franchisee is licensed hereby only for the operation of the Franchised Business at and from Franchisee's Franchised BHC Restaurant and only at Franchisee's Location (unless Franchisor specifically agrees otherwise on a case-by-case basis). Franchisee must offer and sell at Franchisee's Franchised BHC Restaurant and at Franchisee's Location only BHC Products and other goods and services that Franchisor designates as required or approved for all franchisees. Franchisor has the right to change and add other authorized goods and services, which Franchisee will then be required to offer.
- (b) Franchisee may not sublicense, sublease, subcontract or enter any management agreement, concession agreement, partnership agreement or joint venture agreement providing for, the right to operate the Franchised Business or to use the System granted pursuant to this Agreement.
3.5 Electronic Execution and Copies.
- (a) Executed counterparts of this Agreement (or any portion of this Agreement) may be delivered by any of the parties by fax, electrical, digital, magnetic, optical, electromagnetic, or similar capability regardless of the medium of transmission (any such medium is referred to in this section 3.5(a) and the following section 3.5(b) as "electronic"), and such delivery will be effective and binding upon such party, and will not in any way diminish or affect the legal effectiveness, validity or enforceability of this Agreement.
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 only licensed to operate the Franchised Business at and from their Franchised Bhc Restaurant location. The franchisee must offer and sell only Bhc Products and other approved goods and services at this location. Bhc retains the right to change and add other authorized goods and services, which the franchisee would then be required to offer. Franchisees are not allowed to sublicense, sublease, subcontract, or enter into any agreement that provides another party the right to operate the Franchised Business or use the Bhc system.
However, Bhc may specifically agree otherwise on a case-by-case basis, allowing a franchisee to operate from a location other than the Franchised Bhc Restaurant. Additionally, franchisees may not cater or deliver Bhc Products through other channels without Bhc's prior written consent. This indicates that while the standard operation is confined to the approved restaurant location, there are possibilities for exceptions with the franchisor's explicit agreement.
For a prospective franchisee, this means that operating solely from the approved location is the default. Any desire to operate from an alternative location or to engage in catering or delivery services requires prior approval from Bhc. This ensures that Bhc maintains control over brand consistency and service quality. It is important to discuss any potential needs for alternative operation locations or catering/delivery services with Bhc during the franchise application process to understand the likelihood of approval and any associated conditions.