Under what conditions is Bhc's consent to the proposed assignment deemed approved?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Prior to any Assignment by Franchisee, Franchisee must notify Franchisor of Franchisee's intent to sell, transfer or assign the Franchise, all (or substantially all) the assets of the Franchised BHC Restaurant, or a controlling or non- controlling interest in Franchisee (if an entity).
The notice must be in writing, delivered to Franchisor in accordance with section 16.1 hereof and include the following:
(i) the proposed transferee's name and address;
(ii) a copy of all agreements related to the sale, assignment, or transfer of the Franchise, the assets of the Franchised BHC Restaurant, or the controlling interest in Franchisee (if an entity); and
(iii) the proposed transferee's application for approval to become the successor franchisee (this application must include all forms, financial disclosures and related information generally used by Franchisor when interviewing prospective new franchisees, if Franchisor makes those forms available to Franchisee.
If the forms are not readily available, Franchisee must request that Franchisor deliver the forms to Franchisee by business courier in accordance with section 16.1 hereof within 15 calendar days).
As soon as practicable after the receipt of the proposed transferee's application, Franchisor will notify, in writing, Franchisee and the proposed transferee of any additional information or documentation necessary to complete the transfer application.
If Franchisor's then-existing standards for the approval of new or renewing franchisees are not readily available to Franchisee when Franchisee notifies Franchisor of Franchisee's intent to sell, transfer, or assign the Franchise, all or substantially all of the assets of the Franchised BHC Restaurant, or a controlling or non-controlling interest in Franchisee (if an entity), Franchisor will communicate the standards to Franchisee within 15 calendar days.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
Based on the 2025 FDD, Bhc's consent to a proposed assignment by a franchisee is not explicitly "deemed approved" under any specific conditions outlined in the provided excerpts. However, the FDD does detail the process a franchisee must follow when seeking Bhc's approval for an assignment.
Prior to any assignment, the franchisee must notify Bhc in writing of their intent to sell, transfer, or assign the franchise. This notification must include the proposed transferee's name and address, copies of all agreements related to the sale or transfer, and the proposed transferee's application for approval as a successor franchisee. This application should include all forms, financial disclosures, and related information generally used by Bhc when interviewing prospective new franchisees, if Bhc makes those forms available to the franchisee. If these forms are not readily available, the franchisee must request that Bhc deliver them within 15 calendar days.
Bhc will then review the application and notify the franchisee and proposed transferee of any additional information needed to complete the transfer application. The FDD also states that if Bhc's standards for approving new or renewing franchisees are not readily available to the franchisee, Bhc will communicate these standards within 15 calendar days of the notification of intent to sell or transfer the franchise. The FDD excerpts do not specify a timeframe in which Bhc must make a final decision, nor does it state that consent is automatically granted if Bhc fails to respond within a certain period.
Given the absence of a specific "deemed approved" condition, a prospective franchisee should directly ask Bhc about the typical timeframe for reviewing and approving assignment requests and whether there are any circumstances under which consent is automatically granted due to the passage of time or failure to respond. Understanding Bhc's internal review process and timelines will be crucial for any franchisee considering selling or transferring their franchise in the future.