What upgrades and refurbishments are required before renewing the Bhc franchise agreement pursuant to section 5.2(f)?

According to Bhc's 2025 Franchise Disclosure Document, before or no later than 90 days after executing a Renewal Franchise Agreement for an additional term, a franchisee must make physical modifications (i.e., remodel) to their franchised Bhc Restaurant. These modifications must be reasonably necessary to ensure the restaurant is substantially consistent with the then-current Trade Dress or System requirements. The modifications should also allow the restaurant to accommodate any new Bhc Products.

In practical terms, this means that as part of the renewal process, Bhc franchisees will likely need to invest in updating the look and feel of their restaurant to match the current brand standards. This could involve changes to the interior design, exterior signage, color schemes, and overall aesthetic of the restaurant. Additionally, franchisees may need to purchase new equipment or make changes to the kitchen layout to accommodate new menu items or cooking processes that Bhc introduces.

It is also important that the franchisee bring the restaurant and its equipment, materials, and supplies into compliance with the standards then applicable to new Bhc franchises. Franchisees should factor in these potential costs when considering whether to renew their franchise agreement, as these upgrades are a mandatory part of the renewal process. This ensures that all Bhc locations maintain a consistent brand image and meet the evolving needs of the business.