factual

According to the Bhc Franchise Agreement, what is the role of 'BHC USA LLC'?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

ranchise Agreement

Exhibit 4 – Confidentiality and Non-Competition Agreement

Exhibit 5 –Addendum to Lease

TERRITORY AND LOCATION OF FRANCHISED BHC RESTAURANT

Credit References (e.g., Bank, Suppliers, Accountant) Personal References (Someone who has known you for at least 2 years)
1. 1.
2. 2.
Bank Details
Bank Name:
Account Number:
Address:
Phone:

NAMES AND ADDRESSES OF PRINCIPAL EQUITY OPERATORS

If Franchisee is an entity, list below the names, residential addresses, and respective percentage equity ownership interests of each Principal Equity Operator:

GUARANTEE OF FRANCHISE AGREEMENT

dated between BHC USA LLC
("Franchisor") and
("Franchisee") and for other good and valuable consideration, each of the undersigned "Principal Equity
Operators" (as defined in the Franchise Agreement), and their spouses (if applicable), for themselves,
their heirs, successors, and assigns, do jointly, individually and severally hereby absolutely and
unconditionally guarantee the payment of all amounts and the performance of all of the covenants, terms,
conditions, agreements and undertakings contained and set forth in said Franchise Agreement and in any
other agreement(s) by and between Franchisee and Franchisor.

If more than one person has executed this Guarantee of Franchise Agreement ("Guarantee"), the term "the undersigned", as used herein, refers to each such person, and the liability of each of the undersigned hereunder will be joint and several and primary as sureties.

The undersigned, individually and jointly, hereby agree to be personally bound by every covenant, term, condition, agreement, and undertaking contained and set forth in said Franchise Agreement and any other agreement(s) by and between Franchisee and Franchisor.

The undersigned further hereby agree that without the consent of or notice to any of the undersigned and without affecting any of the obligations of the undersigned hereunder: (i) any term, covenant or condition of the Franchise Agreement may be amended, compromised, released or otherwise altered by Franchisor and Franchisee, and the undersigned do guarantee and promise to perform all the obligations of Franchisee under the Agreement as so amended, compromised, released or altered; (ii) any guarantor of or party to the Franchise Agreement may be released, substituted or added; (iii) any right or remedy under the Agreement, this Guarantee or any other instrument or agreement between Franchisor and Franchisee may be exercised, not exercised, impaired, modified, limited, destroyed or suspended; and, (iv) Franchisor or any other person may deal in any manner with Franchisee, any of the undersigned, any party to the Franchise Agreement or any other person.

Should Franchisee be in breach or default under the Franchise Agreement or any other agreement(s) by and between Franchisee and Franchisor, Franchisor may proceed directly against any or each of the undersigned without first proceeding against Franchisee and without proceeding against or naming in such suit any other Franchisee, signatory to the Franchise Agreement or any others of the undersigned. Notice to or demand upon Franchisee or any of the undersigned will be deemed notice to or demand upon Franchisee and all the undersigned, and no notice or demand need be made to or upon any of the undersigned. The cessation of or release from liability of Franchisee or any of the undersigned will not relieve any other guarantors from liability hereunder, under the Franchise Agreement, or under any other agreement(s) between Franchisor and Franchisee, except to the extent that the breach or default has been remedied or moneys owed have been paid.

Any waiver, extension of time or other indulgence granted by Franchisor or its agents, successors, or assigns, related to the Franchise Agreement or any other agreement(s) by and between Franchisee and Franchisor, will not modify or amend this Guarantee, which will be continuing, absolute, unconditional, and irrevocable.

It is understood and agreed by the undersigned that the provisions, covenants, and conditions of this Guarantee inure to the benefit of the Franchisor, its successors, and assigns. This Guarantee may be

assigned by Franchisor voluntarily or by operation of law without reducing or modifying the liability of the undersigned hereunder.

The Lanham Act (15 U.S.C. §1051 et seq.) governs any issue involving Franchisor's proprietary trademarks. To the extent applicable, the laws of the state where the Franchised BHC Restaurant is located govern all issues involving modification of this Guarantee while it is in effect. Otherwise, this Guarantee and the legal relations among the parties hereto will be governed by and construed in accordance with the laws of the State of California. Nothing in this Guarantee is intended to invoke the application of any franchise, business opportunity, antitrust, "implied covenant", unfair competition, fiduciary, or any other doctrine of law of the State of California or any other state, which would not otherwise apply.

Any litigation arising out of or related to this Guarantee will be instituted exclusively in the Superior Court of the State of California, County of Los Angeles, or the United States District Court for the Central District of California. Guarantors hereby waive and covenant never to assert or claim that this venue is for any reason improper, inconvenient, prejudicial, or otherwise inappropriate (including, without limitation, any claim under the judicial doctrine of forum non conveniens). Guarantors further hereby waive and covenant never to assert or claim that such courts lack personal jurisdiction over Guarantors. In the event both such courts lack jurisdiction to enter any requested injunctive relief, an action or proceeding requesting such relief may be brought before any court having jurisdiction to grant such relief.

Should any one or more provisions of this Guarantee be determined to be illegal or unenforceable, all other provisions will nevertheless be effective.

IN WITNESS WHEREOF, each of the undersigned has executed this Guarantee effective as of the date of the Franchise Agreement.

PRINCIPAL EQUITY OPERATOR: SPOUSE OF PRINCIPAL EQUITY OPERATOR:

CONFIDENTIALITY AND NON-COMPETION AGREEMENT

THIS AGREEMENT, dated , by and between BHC USA LLC ("Franchisor") and
of (the "Franchisee"). All capitalized terms not otherwise
defined herein shall have the meanings set forth in the Franchise Agreement, defined below.
The Franchisor has granted to the Franchisee, pursuant to that certain Franchise Agreement dated
(the "Franchise Agreement"), the right to operate a Franchised BHC Restaurant. The
undersigned, in consideration of the receipt and/or use of the Operations Manual and other information
proprietary to the Franchisor, including but not limited to methods, strategies and techniques developed
by the Franchisor or its affiliate relating to operations, marketing, training, advertising, trade secrets,
recipes and other confidential data (collectively referred to as "Proprietary Information"), agrees with
the Franchisor as follows:
  • (6) The undersigned acknowledges that the Operations Manual and other Proprietary Information now or hereafter provided to Franchisee by the Franchisor is proprietary to the Franchisor and must be held in the utmost and strictest confidence.
  • (7) The undersigned represents and agrees that the undersigned will not, without the prior written consent of the Franchisor, either:
    • a. Duplicate or otherwise reproduce the Operations Manual or other Proprietary Information;
    • b. Deliver or make available the Operations Manual or other Proprietary Information to any person other than an authorized representative of the Franchisor;
    • c. Discuss or otherwise disclose the contents of the Operations Manual or other Proprietary Information to any person other than an authorized representative of the Franchisor; or
    • d.

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to the 2025 FDD, BHC USA LLC is the franchisor for the Bhc franchise system. This means that BHC USA LLC grants the franchise to the franchisee, allowing them to operate a Bhc restaurant under the terms and conditions outlined in the Franchise Agreement and Operations Manual. BHC USA LLC is responsible for providing the Franchise Disclosure Document (FDD) to potential franchisees, which contains important information about the franchise opportunity. The FDD must be provided at least 14 calendar days before the franchisee signs a binding agreement or makes a payment to Bhc or an affiliate. BHC USA LLC also has the right to access the franchisee's premises to ensure compliance with the Franchise Agreement.

As the franchisor, BHC USA LLC provides the franchisee with a license to use the Bhc system, including its trademarks, operational techniques, service concepts, and proprietary information. This license allows the franchisee to operate a Bhc restaurant within a specific territory, as defined in the Franchise Agreement. BHC USA LLC relies on the Principal Equity Operators to uphold the agreement. These operators, along with their spouses if applicable, must execute a guarantee of the Franchise Agreement, ensuring their commitment to the franchise.

Bhc franchisees are required to sell BHC products and other approved food and beverages, maintain adequate supplies, and operate the business according to the Operations Manual. Online ordering must be done through the franchisor's website. BHC USA LLC may recommend retail prices for specific products and services to maintain uniformity and strengthen the brand. Overall, BHC USA LLC plays a central role in granting franchises, providing operational guidance, and ensuring brand consistency within the Bhc system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.