Upon expiration or termination of the lease, what assistance will the Landlord provide to Bhc in gaining possession of the premises?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the expiration or termination of the Lease, Landlord will cooperate with and assist Franchisor in gaining possession of the Premises and, if the Franchisor Entity does not elect to assume the Lease for the Premises consistent with subparagraphs 3or 4above, Landlord will allow Franchisor to enter the Premises, without being guilty of trespass and without incurring any liability to Landlord except for any damages caused by Franchisor's willful misconduct or gross negligence, to remove all signs and all other items identifying the Premises as a Franchised BHC Restaurant and to make such other modifications (such as repainting) as are reasonably necessary to protect the BHC marks and system, and to distinguish the Premises from Franchised BHC Restaurants.
In the event Franchisor exercises its option to purchase assets of Tenant, Landlord must permit Franchisor to remove all such assets being purchased by Franchisor.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the landlord is required to cooperate with and assist Bhc in gaining possession of the premises upon the expiration or termination of the lease. If Bhc does not elect to assume the lease, the landlord will allow Bhc to enter the premises without being considered a trespasser and without incurring liability, except for damages caused by Bhc's willful misconduct or gross negligence. This access allows Bhc to remove signs and other items identifying the premises as a Bhc restaurant and to make modifications, such as repainting, to protect Bhc's marks and distinguish the premises from Bhc restaurants.
This provision ensures that Bhc can protect its brand identity and prevent consumer confusion when a franchise location closes. It also outlines the conditions under which Bhc can access the property to remove its branding and other identifying marks. The landlord's cooperation is essential for a smooth transition and to avoid any legal disputes regarding access to the premises.
Additionally, if Bhc exercises its option to purchase the tenant's assets, the landlord must permit Bhc to remove all such assets. This further facilitates the process of Bhc regaining control over the premises and its assets, ensuring a seamless transition following the termination or expiration of the lease.