Besides termination, what alternative remedies does Bhc Franchisor have the option to choose when it has the right to terminate the agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Notwithstanding anything contained herein to the contrary, in those circumstances under which Franchisor has the right to terminate this Agreement, Franchisor also has the option, to be exercised in its sole discretion, to choose alternative remedies to its right to terminate the entire Agreement.
- (d) Notwithstanding anything contained herein to the contrary, in those circumstances under which Franchisor has the right to terminate this Agreement, Franchisor also has the right to exercise any and all remedies available to it at law or in equity, including specific performance and damages (including liquidated and punitive damages). All rights and remedies provided herein are in addition to and not in substitution of all other rights and remedies available to a party at law or in equity.
13.2 Immediate Termination.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, when Bhc has the right to terminate the franchise agreement, it has the option to choose alternative remedies. Bhc can exercise any and all remedies available to it at law or in equity. These remedies include specific performance and damages, including liquidated and punitive damages. Bhc's rights and remedies are in addition to, and not in substitution of, all other rights and remedies available to a party at law or in equity.
Additionally, if a franchisee breaches the agreement, Bhc can choose to cure the breach on behalf of the franchisee. Bhc can do this without waiving any claim for the breach and without notice to the franchisee. The franchisee is then responsible for paying all costs and expenses, including attorney's fees, that Bhc incurs as a result of curing the breach. These costs are due and payable by the franchisee to Bhc on demand.
These alternative remedies provide Bhc with flexibility in addressing franchisee breaches. Rather than immediately terminating the agreement, Bhc can attempt to rectify the situation, ensure compliance, and recover any associated costs. This approach may be beneficial in preserving the franchise relationship and minimizing disruption to the Bhc system. However, it also places the financial burden of curing breaches on the franchisee, which could create additional financial strain.