Under what conditions can Bhc establish or franchise another Bhc Restaurant in the Development Area?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
If you enter into an MFA with us, we will not establish or franchise anyone else to establish any BHC Restaurant in the Development Area up to the earlier of: (i) the expiration or termination of the MFA. The Development Area generally consists of a city or a portion of a city. Captive locations will be excluded from your Designated Area, and we have the right to develop or franchise the following captive locations: (1) military bases; (2) public transportation facilities; (3) sports facilities, including race tracks; (4) student unions or other similar buildings on college or university campuses; (5) amusement and theme parks; (6) malls; (7) special events; (8) hospitals; (9) hotel, resort, or other lodging facility; (10) state or national parks; (11) exhibition hall; conference facility or convention center; (12) casino or gambling establishment; (13) esports events and venues; (14) street fairs; (15) delivery facilities (e.g.,, ghost kitchens) or (16) any similar area to the sites referenced herein (individually and collectively, "Captive Location(s)).We may not alter the Development Area without your written agreement. However, we may
terminate the MFA if you (i) fail to meet the Development Schedule; (ii) fail to comply with any other terms and conditions of the MFA; (iii) make or attempt to make a transfer or assignment in violation of the MFA; or (iv) fail to comply with the terms and conditions of any individual MFA or of any other agreement to which you and we or our affiliates are parties.
Source: Item 12 — Territory (FDD pages 38–39)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc will not establish or franchise anyone else to establish a Bhc Restaurant in the Development Area up to the earlier of the expiration or termination of the Master Franchise Agreement (MFA). The Development Area generally consists of a city or a portion of a city. However, this is subject to certain exceptions for "Captive Locations".
Bhc retains the right to develop or franchise Captive Locations, which include military bases, public transportation facilities, sports facilities (including race tracks), student unions or similar buildings on college or university campuses, amusement and theme parks, malls, special events, hospitals, hotels/resorts/lodging facilities, state or national parks, exhibition halls/conference facilities/convention centers, casinos or gambling establishments, esports events and venues, street fairs, delivery facilities (e.g., ghost kitchens), or any similar area. Bhc may not alter the Development Area without the franchisee's written agreement.
Bhc may terminate the MFA if the franchisee (i) fails to meet the Development Schedule; (ii) fails to comply with any other terms and conditions of the MFA; (iii) makes or attempts to make a transfer or assignment in violation of the MFA; or (iv) fails to comply with the terms and conditions of any individual MFA or of any other agreement to which the franchisee and Bhc or its affiliates are parties. Therefore, even with a protected development area, a franchisee must meet the obligations in the MFA to maintain their exclusive rights.