Under what conditions may the Franchisor defer a scheduled opening date for a Bhc restaurant?

According to Bhc's 2025 Franchise Disclosure Document, the franchisor has the discretion to defer a scheduled opening date for a Master Franchisee. This deferral is contingent upon Bhc determining that the Master Franchisee (or their Affiliated Entity) made a diligent effort to open a Master Franchised Bhc Restaurant according to the agreed-upon schedule.

The critical factor for Bhc's approval of a deferred opening is that the Master Franchisee's inability to meet the original schedule must stem from reasons beyond their reasonable control. This suggests that delays caused by factors such as unforeseen regulatory hurdles, natural disasters, or other external events could potentially justify a deferral. However, the FDD stipulates that Bhc has sole discretion in making this determination.

For a prospective Master Franchisee, this clause highlights the importance of proactive communication with Bhc and meticulous documentation of any challenges encountered during the opening process. Demonstrating a 'diligent effort' and providing clear evidence of circumstances 'beyond reasonable control' will be crucial in securing a deferral if needed. The franchisee should seek clarity from Bhc on what specific documentation or evidence would be required to support a request for deferral.