What agreements outline the principal obligations of a Bhc Master Franchisee?

According to Bhc's 2025 Franchise Disclosure Document, the principal obligations of a Master Franchisee are primarily outlined in the Master Franchise Agreement (MFA) and its associated exhibits. Specifically, Exhibit 3 of the MFA includes a Guarantee of MFA, which must be signed by each Principal Equity Operator (and their spouse, if applicable). This guarantee requires them to ensure that all obligations of the franchisee under the MFA are fulfilled. These obligations include provisions related to payments to Bhc, confidentiality, and non-competition.

The Master Franchisee is responsible for maintaining a trained staff sufficient to operate the Master Franchise Business according to Bhc's standards. They must also ensure that their Affiliate Franchisees and Subfranchisees maintain adequately staffed BHC Restaurants. The day-to-day operations must be managed by the Master Franchisee or a full-time General Manager who has completed Bhc's training program. The General Manager's duties include establishing and monitoring food safety and quality policies, ensuring compliance, and developing business continuity policies. The General Manager must agree in writing not to compete against Bhc and to preserve confidential information.

Furthermore, the Master Franchisee must comply with all terms and conditions of each Franchise Agreement, including operating requirements. They must sell only BHC Products and other approved food and beverages specified in Bhc's authorized menu, sourced from designated vendors and approved suppliers. The Master Franchisee must operate the Franchised Business at an approved BHC Restaurant and ensure Subfranchisees do the same, adhering strictly to the procedures outlined in the Operations Manual. They are also responsible for maintaining adequate supplies and inventory to meet consumer demand. The Master Franchisee is responsible for a USD$600 inspection fee, in addition to accommodation, transportation, meals, daily allowances, and other costs and expenses for Bhc's personnel in connection with site visits, which are limited to three times per Franchised BHC Restaurant.

Upon termination or expiration of the Master Franchise Agreement, the Master Franchisee must discontinue using Bhc's Marks and cannot operate under any name that might imply association with Bhc. They must also contact online review sites to remove references to the BHC Restaurant and comply with post-termination competition restrictions. The Master Franchisee is obligated to ensure Subfranchisees comply with their Subfranchise Agreements and to notify Bhc of any breaches. They must also maintain adequate security personnel at the BHC Restaurant and promptly settle any debts incurred in operating the business. Additionally, the Master Franchisee must inform Bhc of any investigations or proceedings that could affect the BHC Restaurant or their ability to meet obligations under the agreement.