Under what conditions can Bhc commence operating the franchised restaurant on behalf of a deceased franchisee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
as soon as practicable (but not more than 270 days) after the date of death in accordance with such person's will or, if such person dies without a will, in accordance with laws of intestacy governing the distribution of such person's estate, provided that adequate provision is made for the management of the Franchised Business. If Franchisor determines (i) there is no imminent sale to a qualified successor or (ii) there is no heir or other Principal Equity Operator capable of operating the Franchise, Franchisor may
(but is not obligated to) immediately commence operating the BHC Restaurant on Master Franchisee's behalf for a period of up to 90 days, renewable as Franchisor deems necessary for up to one year and Franchisor will periodically discuss the status with the h
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc may commence operating a franchised restaurant on behalf of a deceased franchisee under specific circumstances. If Bhc determines that there is no imminent sale to a qualified successor or no heir or Principal Equity Operator is capable of operating the franchise, Bhc has the option, but not the obligation, to immediately begin operating the Franchised Bhc Restaurant on the franchisee's behalf.
This operation by Bhc can last for up to 90 days initially, and Bhc can renew this arrangement as deemed necessary, potentially extending it for up to one year. During this period, Bhc will periodically discuss the status of the franchise with the heirs of the deceased franchisee.
If Bhc decides to operate the restaurant, it can place an interim manager in the Franchised Bhc Restaurant. The franchisee's estate is responsible for covering the interim manager's salary, transportation, lodging, related living expenses, and a management administration fee of 15%. This arrangement ensures the continued operation of the Bhc restaurant while the franchisee's estate is being settled and a permanent successor is identified.