Under what condition is a Bhc franchisee considered in material default if they relocate their restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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 will be considered in material default if they fail to open their Bhc restaurant at the new location after closing the restaurant at its prior location.
This stipulation means that Bhc franchisees must ensure a seamless transition when relocating. Any delays in opening at the new site after closing the old one will constitute a material breach of the franchise agreement. This could lead to penalties or even termination of the agreement.
Prospective Bhc franchisees should carefully consider the logistical and financial implications of relocation, ensuring they have the resources and plans in place to avoid any gap between closing the old location and opening the new one. This includes securing necessary approvals, completing construction or renovations promptly, and managing the move efficiently to maintain continuous operation and avoid default.