Under what condition can Bhc terminate the Master Franchise Agreement after providing written notice?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
e's rights under this Agreement are terminated by Franchisor because of an event described in section 13.2(a) above, section 14.1 below is not applicable, and Franchisor may immediately commence an action under section 14.2 or 14.3 below, as applicable, to collect damages or otherwise enforce its rights.
13.3 Termination After Notice.
(a) Except as provided in section 13.2 above, Franchisor may terminate this Agreement only for good cause (as defined in section 13.1(a) above) after giving Master Franchisee prior written notice setting forth the asserted breach of this Agreement and giving Master Franchisee 30 days in which to cure the breach. Upon receipt of a notice of default, Master Franchisee must immediately commence diligently to cure said breach, and if Master Franchisee cures said breach within 30 days, Franchisor's right to terminate this Agreement will cease. If because of the nature of the breach, it would be unreasonable for Master Franchisee to be able to cure the breach within 30 days, Master Franchisee will be given additional time (up to 30 additional days) as is reasonably necessary in Franchisor's determination to cure
said breach, upon condition that Master Franchisee must, upon receipt of such notice from Franchisor, immediately commence to cure such breach and continue to use Master Franchisee's best efforts to do so.
- (b) If Master Franchisee's rights under this Agreement are terminated by Franchisor for material breach, Franchisor may, at Franchisor's option, declare Master Franchisee in breach of all franchise agreements and other agreements Master Franchisee has executed with Franchisor, and terminate Master Franchisee's rights under those other agreements as well.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc can terminate the Master Franchise Agreement (MFA) for good cause, which is defined in section 13.1(a), after providing written notice to the Master Franchisee. The notice must detail the specific breach of the agreement. The Master Franchisee then has 30 days to cure the breach.
If the Master Franchisee begins to correct the breach immediately upon receiving the notice and successfully cures it within the 30-day period, Bhc's right to terminate the agreement is nullified. However, if the nature of the breach makes it unreasonable to expect a cure within 30 days, the Master Franchisee may be granted additional time, up to 30 more days, to resolve the issue. This extension is contingent on the Master Franchisee starting the cure process immediately and diligently working to correct the breach.
If the Master Franchisee fails to make any payment due under the agreement, section 14.1 is not applicable, and Bhc may immediately commence an action under section 14.2 to collect damages or otherwise enforce its rights. If the Master Franchisee and Bhc agree to mutually terminate the agreement, the Master Franchisee must return a signed counterpart of any document Bhc prepares to affect the termination not later than 10 days after the Master Franchisee receives it, or the mutual agreement to terminate will be voidable by Bhc, and Bhc may thereafter immediately and unilaterally terminate this Agreement and require payment of all sums due and payable to Bhc at the date of termination.