Under what condition can Bhc terminate the Franchise Agreement if the Master Franchisee has not commenced operation of the Bhc Restaurant?

According to Bhc's 2025 Franchise Disclosure Document, Bhc can terminate the Master Franchise Agreement (MFA) if the Master Franchisee fails to commence operation of the Franchised Bhc Restaurant within a specified timeframe. Specifically, if the Master Franchisee has secured suitable premises approved by Bhc but has not commenced operations within fourteen (14) months after the Effective Date of the agreement, Bhc has the right to terminate the agreement by providing written notice.

This condition emphasizes the importance of timely establishment and operation of the Bhc Restaurant. The Master Franchisee must build out the restaurant and commence operations within ten (10) months after Bhc approves the premises, using approved architects, project managers, contractors, and plans. This timeline is contingent on receiving a certificate of occupancy (or equivalent) from the local government authority, which can influence the overall commencement date.

Prospective Master Franchisees should be aware of these strict timelines and ensure they have a solid plan for site selection, build-out, and commencement of operations. Delays in any of these areas could lead to the termination of the Master Franchise Agreement. Bhc also offers assistance in the site selection process but retains the final right of review and consent, underscoring the collaborative yet controlled approach to site development.