According to Bhc, how must a Master Franchisee operate the Franchised Business?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) At all times, and subject to applicable state law and regulations, Master Franchisee must be, or employ, a General Manager who will devote his or her entire time during normal business hours, as defined in the Operations Manual, to the management, operation, and development of the Franchised Business. The General Manager must ensure that Master Franchisee fulfill its obligations to Master Franchisee's customers in a timely and professional manner and he or she may not engage in any other business requiring his or her active participation during normal business hours. At least one Principal Equity Operator, with or through the General Manager, must participate personally in the direct operation of the Master Franchise Business.
- (b) Master Franchisee must, and ensure that your Subfranchisees, sell to customers BHC Products and other food and beverages specified in Franchisor's then authorized menu, and related products and accessories supplied by designated vendors and approved suppliers for resale at the BHC Restaurants in accordance with this Agreement and the Operations Manual (as periodically amended by Franchisor). Master Franchisee must only operate the Franchised Business at a Franchised BHC Restaurant, and ensure the Subfranchisees only operate their Business, in strict accordance with the procedures set forth in the Operations Manual or otherwise provided to Master Franchisee by Franchisor in writing. Master Franchisee must, and ensure the Subfranchisee, maintain an adequate level of supplies and inventory in order to properly operate the BHC Restaurant. Online ordering by customers of BHC
Products may only be made through the authorized page on Franchisor's website. Master Franchisee must, and ensure the Subfranchisee, use the standard signs and formats that Franchisor prescribes in operating the BHC Restaurant and conducting the Franchised Business.
- (c) To protect and maintain the integrity, reputation and goodwill of the System and the Marks, Franchisor requires that Master Franchisee comply, and ensure that Subfranchisees comply, with the methodology Franchisor prescribes in providing BHC Products to customers.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must adhere to several operational requirements to maintain the integrity of the Bhc system. The Master Franchisee is required to have a General Manager who dedicates their entire time during normal business hours to managing, operating, and developing the Franchised Business. This General Manager must ensure that the Master Franchisee meets customer obligations promptly and professionally, and they cannot engage in any other conflicting business activities during these hours. Additionally, at least one Principal Equity Operator, working with or through the General Manager, must be actively involved in the direct operation of the Master Franchise Business.
The Master Franchisee is obligated to sell only BHC Products and other approved food and beverages specified in Bhc's authorized menu. These products must be sourced from designated vendors and approved suppliers and resold at BHC Restaurants. The operation of the Franchised Business must strictly adhere to the procedures outlined in the Operations Manual or as otherwise provided in writing by Bhc. This includes maintaining an adequate level of supplies and inventory to ensure smooth operations. Online ordering must be conducted through the authorized page on Bhc's website, and the Master Franchisee must use the standard signs and formats prescribed by Bhc.
To protect the reputation and goodwill of the Bhc system, the Master Franchisee must comply with the methodologies prescribed by Bhc for providing products to customers. Furthermore, the Master Franchisee is responsible for ensuring that all Subfranchisees also adhere to these operational standards. This includes compliance with all applicable laws, rules, and regulations, as well as maintaining necessary permits, certificates, and licenses. The Master Franchisee must also promptly address any financial obligations incurred in operating the BHC Restaurant and notify Bhc of any legal proceedings or incidents that could affect the business or its reputation. These measures are designed to ensure consistency and quality across all Bhc franchise locations.