Within how many months after the Effective Date must a Bhc franchisee secure and have reviewed/consented to a premises for their Franchised Bhc Restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Premises acceptable to Franchisor where Franchisee's Franchised BHC Restaurant will be operated must be located and secured by Franchisee and reviewed and consented to by Franchisor within four (4) months after the Effective Date. Upon signing this Franchise Agreement, Franchisee must promptly locate one or more proposed sites which meet Franchisor's current standards and specifications. For each proposed site, Franchisee will submit to Franchisor certain information regarding the site that Franchisor requests. Upon receiving the information regarding a proposed site, Franchisor will review the information and either accept or reject the proposed site. For any site that Franchisor reviews, Franchisee must reimburse Franchisor for all costs and expenses that Franchisor incurs in reviewing the site. If Franchisor does not approve the proposed site within 30 days after Franchisee's complete submission of the requested information (or 15 days after Franchisee provides any supplemental information Franchisor requests), the site will be deemed rejected. If Franchisor disapproves, Franchisee must promptly propose an alternative location. Franchisor does not locate sites for Franchisee. However, Franchisor may, without, obligation, assist Franchisee in locating or evaluating a site for a reasonable fee. If Franchisee has not located a site for Franchisee's Franchised BHC Restaurant that is acceptable to Franchisor within four (4) months after the Effective Date, Franchisor may cancel this Agreement on the basis of Franchisee's failing to find an acceptable site.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must locate and secure a premises acceptable to Bhc for their franchised restaurant within four months after the Effective Date of the Franchise Agreement. This location must also be reviewed and consented to by Bhc within this same four-month timeframe.
Upon signing the Franchise Agreement, the franchisee is expected to promptly begin the process of identifying potential sites that meet Bhc's standards. The franchisee is responsible for submitting all required information about each proposed site to Bhc for review. Bhc will then evaluate the information and either approve or reject the site. The franchisee must also reimburse Bhc for any costs incurred during the site review process.
If Bhc does not approve a proposed site within 30 days of receiving complete information from the franchisee (or 15 days after receiving supplemental information), the site is considered rejected. If the initial site is disapproved, the franchisee must quickly propose an alternative location. It is important to note that Bhc does not locate sites for the franchisee, although they may offer assistance in locating or evaluating a site for a reasonable fee. Failure to secure an acceptable site within the four-month period can result in Bhc canceling the Franchise Agreement.