Under what circumstances will a Master Franchised Bhc Restaurant not be deemed 'Abandoned' due to inactivity?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
conditions contained in this Agreement, and other good and valuable consideration, Master Franchisee and Franchisor hereby agree as follows.
1. DEFINITIONS
"Abandoned" means cessation of operation of the Franchised Business for a period of five consecutive business days, without Franchisor's prior written consent. A repeated pattern of inactivity at Master Franchised BHC Restaurant for periods of less than five consecutive business days may result in the Franchised Business being deemed Abandoned by Master Franchisee if in Franchisor's judgment such inactivity adversely impacts the Franchised Business. However, Master Franchised BHC Restaurant will not be deemed Abandoned if the inactivity is due to natural disasters or other matters reasonably beyond Master Franchisee's control, provided that Master Franchisee gives Franchisor notice of any such closure within five business days after the initial occurrence of the event resulting in such inactivity, and Master Franchisee acknowledges in writing that such inactivity is due to one of the foregoing causes, and provided further that Master Franchisee re-establish the Franchised Busin
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchised Bhc Restaurant will not be deemed 'Abandoned' if the inactivity is due to natural disasters or other matters reasonably beyond the Master Franchisee's control. However, this exception is conditional. The Master Franchisee must provide Bhc notice of the closure within five business days of the event causing the inactivity.
Furthermore, the Master Franchisee must acknowledge in writing that the inactivity stems from one of the aforementioned causes (natural disasters or matters beyond their control). Finally, the Master Franchisee must re-establish the Franchised Business and be fully operational within 180 days after the initial event, unless Bhc permits a longer period.
In essence, while Bhc acknowledges that unforeseen circumstances can disrupt operations, the Master Franchisee has a responsibility to communicate promptly and restore the business to full operation within a defined timeframe to avoid being classified as 'Abandoned'.