What are 'Other Agreements' in the context of Bhc subfranchising?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to entering into any form Subfranchise Agreement or any other form agreements, including an area development agreement or lease addendum (collectively, "Other Agreements"), for the first time with a prospective subfranchisee or Subfranchisee, Master Franchisee shall submit to and receive Franchisor's approval of such proposed form Subfranchise Agreement or Other Agreement.
In addition, once a form Subfranchise Agreement or Other Agreement has been approved, Master Franchisee shall not modify the terms of such form documents without submitting to and receiving Franchisor's prior written approval of such modified form documents.
Master Franchisee's form Subfranchise Agreement and Other Agreements shall include terms and conditions consistent with this Agreement and as prescribed by Franchisor from time to time, including the maximum size of the territory granted under any Subfranchise Agreement or Other Agreement.
Executed copies of each Subfranchise Agreement and any related Other Agreements shall be sent to Franchisor before the opening of the relevant approved BHC Restaurant for Franchisor's records.
Executed copies of any Other Agreements Master Franchisee enters into with Subfranchisees shall be sent to Franchisor within thirty (30) days of the date of execution.
- (c) Master Franchisee undertakes that:
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, 'Other Agreements' refer to any agreements beyond the Subfranchise Agreement that a Master Franchisee might enter into with a prospective subfranchisee. Specifically, the document mentions that these 'Other Agreements' can include an area development agreement or lease addendum. These agreements, along with the Subfranchise Agreement, require Franchisor approval before they are finalized with a subfranchisee.
Bhc requires that Master Franchisees submit any form of Subfranchise Agreement or 'Other Agreement' to the Franchisor for approval before entering into such agreements with a prospective subfranchisee for the first time. Furthermore, once a form Subfranchise Agreement or 'Other Agreement' has been approved, the Master Franchisee cannot modify the terms without obtaining prior written approval from Bhc. This ensures that all agreements are consistent with the Master Franchise Agreement and any requirements prescribed by Bhc.
Executed copies of each Subfranchise Agreement and any related 'Other Agreements' must be sent to Bhc before the opening of the relevant approved Bhc Restaurant for the franchisor's records. Additionally, executed copies of any 'Other Agreements' the Master Franchisee enters into with Subfranchisees must be sent to Bhc within thirty days of execution. This allows Bhc to maintain oversight and control over the subfranchising process and ensure compliance with its standards and policies.
Master Franchisees must also adhere to Bhc's requirements regarding any amendments, renewals, terminations, transfers, assignments, or novations of Subfranchise Agreements or 'Other Agreements'. Bhc reserves the right to approve any or all of these changes, ensuring that the terms and conditions remain in line with the overall franchise system. This comprehensive approval process helps Bhc protect its brand and maintain consistency across all franchised and subfranchised locations.