According to the agreement, what is the relationship between Bhc USA LLC and the Franchisee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Franchise Agreement ("Agreement") is made and entered into as of | , (the |
|---|---|
| "Effective Date"), by and among BHC USA LLC, a California limited liability company, doing business | |
| as "BHC", and "BHC Chicken" | ("Franchisee"), with |
| ("Franchisor"), and | |
| reference to the following facts: |
3. GRANT OF FRANCHISE
3.1 Grant of Franchise.
- (a) By their respective signatures below, Franchisor hereby grants to Franchisee, and Franchisee hereby accepts, a non-exclusive license ("Franchise") to participate in and use the System to conduct the Franchised Business at the Franchised BHC Restaurant and within Franchisee's Territory as described in Exhibit 1 attached hereto, in strict accordance with this Agreement and the Operations Manual, from the Effective Date until the end of the term hereof, and any additional term unless sooner terminated. So long as Franchisee complies with this Agreement, Franchisor will not authorize another BHC franchisee to operate, or itself operate, a BHC retail Franchised BHC Restaurant in Franchisee's Territory, subject to exceptions and reservations provided herein.
- (b) Franchisor is executin
16. Additional Provisions.
- B.
Landlord further acknowledges that Tenant is not an agent or employee of Franchisor and the Tenant has no authority or power to act for, or to create any liability on behalf of, or to in any way bind Franchisor or any affiliate of Franchisor, and that Landlord has entered into this Addendum to Lease with full understanding that it creates no duties, obligations or liability of or against Franchisor or any affiliate of Franchisor, unless and until the Lease is assigned to, and accepted in writing by, Franchisor.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Franchise Agreement establishes the relationship between Bhc USA LLC, identified as the Franchisor, and the Franchisee. Bhc grants the Franchisee a non-exclusive license to operate a Bhc restaurant using the Bhc system. The Franchisee, in turn, agrees to operate the business in strict accordance with the Franchise Agreement and the Operations Manual. This license allows the franchisee to conduct the franchised business at the specified BHC Restaurant within a defined territory.
Bhc ensures that, as long as the Franchisee adheres to the agreement, it will not authorize another franchisee or operate a competing BHC retail restaurant within the Franchisee's designated territory. This provision offers the franchisee a degree of territorial protection, although there may be exceptions and reservations outlined in the agreement.
The agreement also stipulates that the franchisee is not an agent or employee of Bhc and has no authority to act on behalf of Bhc. The franchisee operates as an independent entity, responsible for managing their own business while adhering to the standards and guidelines set by Bhc. This arrangement is typical in franchising, where franchisees are independent business owners who license the use of the franchisor's brand and system.