Under what condition can the Bhc franchisor rescind their election to assume the lease?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor elects to assume the Lease, the Franchisor Entity shall not be required to cure defaults and/or to begin paying rent until Landlord delivers possession of the Premises to the Franchisor Entity. At any time until Landlord delivers possession of the Premises, Franchisor shall have the right to rescind the election to assume by written notice to Landlord.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc has the right to rescind its election to assume a lease under specific conditions. If Bhc elects to assume the lease, the franchisor is not required to begin paying rent or cure defaults until the landlord delivers possession of the premises to Bhc.
Bhc retains the right to change its mind and rescind the election to assume the lease. This rescission is only possible by providing written notice to the landlord.
Importantly, Bhc can only rescind its election to assume the lease at any time until the landlord delivers possession of the premises to Bhc. This provides Bhc with a window of opportunity to re-evaluate its decision based on the condition of the premises or any other relevant factors before taking full responsibility for the lease.