Under what circumstances is a Bhc franchisee required to notify the franchisor of a closure?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
8.6 Relocation of Franchisee's Franchised BHC Restaurant.
- (a) If Franchisee desires to relocate the Franchised BHC Restaurant, Franchisee may do so provided that not less than 90 days prior to the desired date of relocation (unless prior notice is impractical because of a required relocation in which event notice must be given as soon as possible), Franchisee makes a written request for consent to relocate, describing the reasons for the relocation and providing complete written details respecting any proposed new location.
- (b) Within 20 business days after receiving Franchisee's request, Franchisor will either approve or disapprove in writing such closure or relocation. If Franchisor disapproves a proposed relocation, Franchisee may request an alternative proposed new location for Franchisee's Franchised BHC Restaurant pursuant to the provisions of this section 8.6. Notwithstanding the foregoing, Franchisee shall be deemed to be in material default if Franchisee fails to open the Franchised BHC Restaurant at the new location within closure of the Franchised BHC Restaurant at the prior location.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must notify Bhc of a potential relocation of the franchised restaurant. Specifically, the franchisee must submit a written request for consent to relocate at least 90 days before the desired relocation date. However, if prior notice is impractical due to a required relocation, the franchisee must provide notice as soon as possible. The written request must detail the reasons for the relocation and provide complete information about the proposed new location.
Bhc will then either approve or disapprove the closure or relocation in writing within 20 business days of receiving the franchisee's request. If Bhc disapproves, the franchisee can request approval for an alternative new location. However, the franchisee will be in material default if they fail to open the Bhc restaurant at the new location after closing the previous location.
This notification requirement ensures that Bhc maintains control over its brand and location strategy. It allows Bhc to assess the suitability of the new location and ensure that the relocation will not negatively impact the franchise system. The franchisee's failure to comply with these notification requirements could result in a material breach of the franchise agreement.