Under what condition will the Franchisor not operate a Bhc Restaurant within the Development Area?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
So long as Master Franchisee's obligations under the Development Schedule are being met on a timely basis and until this Agreement terminates, Franchisor will not itself operate a BHC Restaurant within the Development Area, nor allow any of its affiliates or other BHC franchisees to do so. Captive locations will be excluded from Master Franchisee's Development Area and Franchisor has the right to develop or franchise the following Captive location locations: (1) military bases; (2) public transportation facilities; (3) sports facilities, including race tracks; (4) student unions or other similar buildings on college or university campuses; (5) amusement and theme parks; (6) malls; (7) special events; (8) hospitals; (9) hotel, resort, or other lodging facility; (10) state or national parks; (11) exhibition hall; conference facility or convention center; (12) casino or gambling establishment; (13) esports events and venues; (14) street fairs; (15) delivery facilities (e.g.,, ghost kitchens) or (16) any similar area to the sites referenced herein n (collectively, "Captive locations"). Franchisor may not alter the Development
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisor will not operate a Bhc restaurant within the Development Area as long as the Master Franchisee meets the obligations under the Development Schedule on a timely basis and until the Master Franchise Agreement terminates. However, this is subject to certain exceptions for "Captive locations."
Captive locations are excluded from the Master Franchisee's Development Area, allowing Bhc to develop or franchise in these areas. These locations include military bases, public transportation facilities, sports facilities (including race tracks), student unions or similar buildings on college or university campuses, amusement and theme parks, malls, special events, hospitals, hotels, resorts, state or national parks, exhibition halls, conference facilities or convention centers, casinos or gambling establishments, esports events and venues, street fairs, delivery facilities (e.g., ghost kitchens), or any similar area to the sites referenced.
This clause ensures that while the Master Franchisee has certain exclusive rights within their Development Area, Bhc retains the flexibility to operate or franchise in specific, often high-traffic, locations that may be beneficial for brand exposure and overall growth. A prospective franchisee should carefully review the Development Schedule and understand the implications of these reserved rights, as they could impact the franchisee's potential market and revenue within the Development Area.