Besides operating at the franchised Bhc restaurant, under what condition is a franchisee specifically allowed to offer Bhc products elsewhere?

According to Bhc's 2025 Franchise Disclosure Document, franchisees are generally restricted to operating their Bhc business solely at their designated franchised restaurant location. The franchise agreement explicitly states that franchisees do not have the right to offer Bhc products anywhere other than their franchised restaurant unless Bhc specifically allows it. This restriction underscores Bhc's control over its brand and distribution channels.

This condition means that a Bhc franchisee needs explicit permission from Bhc to sell products outside of their restaurant. This could include catering events, selling at local markets, or any other off-site sales. Without this specific approval, the franchisee would be in violation of the franchise agreement. Bhc retains all other rights to market and sell Bhc products at venues other than franchised Bhc restaurants and through other channels of distribution anywhere, including within Franchisee's Territory.

For a prospective franchisee, this highlights the importance of discussing any desired alternative sales channels with Bhc during the franchise application process. Understanding the conditions under which Bhc might grant such permission is crucial for business planning. It is also important to note that even with permission, any additional businesses or services would fall under the scope of the franchised business and be subject to royalty and marketing and promotion fees.

This level of control is common in franchising, as franchisors seek to maintain brand consistency and quality control across all outlets. Bhc's approach ensures that the brand is represented uniformly and that any expansion beyond the traditional restaurant setting aligns with the company's strategic goals.