Under what circumstances will the transfer of a Bhc Master Franchisee's interest to a spouse, parent, or adult child not be considered an assignment?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, in the event of Master Franchisee's death or legal incapacity if Master Franchisee is an individual, or the death or legal incapacity of a Principal Equity Operator of Master Franchisee owning a majority equity interest ("Majority Equity Owner") in Master Franchisee (if an entity), the transfer of Master Franchisee's or the deceased Majority Equity Owner's interest in this Agreement to his or her spouse, parent or adult children, will not be deemed Assignment by Master Franchisee, provided a qualified and trained General Manager remains employed at the BHC Restaurant or another responsible management employee or agent of Master Franchisee satisfactorily trained by Franchisor will be responsible for the Franchised Business.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a transfer of a Master Franchisee's interest in the franchise agreement to a spouse, parent, or adult child will not be considered an assignment under specific conditions. This applies in the event of the Master Franchisee's death or legal incapacity, if the Master Franchisee is an individual. The same condition applies to the death or legal incapacity of a Principal Equity Operator owning a majority equity interest in the Master Franchisee entity.
For this exception to apply, a qualified and trained General Manager must remain employed at the Bhc restaurant. Alternatively, another responsible management employee or agent of the Master Franchisee, who has been satisfactorily trained by Bhc, must be responsible for the franchised business. This ensures that the operation of the Bhc restaurant continues without disruption and maintains the standards set by the franchisor.
This provision provides a degree of security and continuity for the Master Franchisee's family in the event of unforeseen circumstances. However, it's crucial to ensure that the management of the restaurant remains in capable hands, either through an existing qualified manager or a trained family member or agent. This requirement protects the Bhc brand and ensures ongoing compliance with the franchise agreement.