Besides termination, what other options does Bhc have when the franchisee breaches the franchise agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) In addition to all other remedies herein granted, if Master Franchisee breaches in the performance of any of Master Franchisee's obligations or breaches any term or condition of this
Agreement or any related agreement involving third parties, Franchisor may, at Franchisor's election, immediately or at any time thereafter, without waiving any claim for breach hereunder and without notice to Master Franchisee, cure the breach for Master Franchisee's account and on Master Franchisee's behalf, and all costs or expenses including attorney's fees incurred by Franchisor on account thereof are due and payable by Master Franchisee to Franchisor on demand.
(b) If Franchisor terminates this Agreement for cause, Franchisor has the right (but not the obligation) to assume the lease for the BHC Restaurant premises and to purchase Master Franchisee's assets pursuant to section 15.2(d) below.
13.8 Waiver and Delay.
No waiver by Franchisor of any breach or series of breaches in performance by Master Franchisee and no failure, refusal or neglect of Franchisor either to exercise any right, power or option given to Franchisor hereunder or to insist upon strict compliance with or performance of Master Franchisee's obligations under this Agreement or the Operations Manual, constitutes a waiver of the provisions of this Agreement or the Operations Manual with respect to any subsequent breach thereof or a waiver by Franchisor of its right at any time thereafter to require exact and strict compliance with the provisions thereof.
13.9 Collection Costs.
Franchisor is entitled to reimbursement from Master Franchisee upon Franchisor's demand of all costs Franchisor has incurred (including reasonable attorneys' fees and investigator's fees) to enforce Franchisor's rights under this Agreement, including actions to collect any amounts due and delinquent hereunder.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc has several options besides termination if a franchisee breaches the franchise agreement. Bhc can elect to cure the breach on the franchisee's behalf, demanding reimbursement for all costs and expenses incurred, including attorney's fees. This means Bhc can step in to correct the franchisee's failure to meet their obligations, ensuring the business continues to operate according to standards, while holding the franchisee financially responsible for the intervention.
Additionally, Bhc's failure to exercise any right or insist on strict compliance with the agreement or operations manual does not constitute a waiver of any provision or right to require exact compliance in the future. This protects Bhc's ability to enforce the franchise agreement terms later, even if they initially overlook a breach. Bhc is also entitled to reimbursement from the franchisee for all costs incurred to enforce its rights under the agreement, including reasonable attorneys' and investigator's fees. This provision ensures that Bhc can pursue legal action to protect its interests without bearing the full financial burden.
Furthermore, if the franchisee attempts to assign the franchise without Bhc's consent, it will constitute a material breach of the agreement, potentially leading to immediate termination. Bhc also retains the right to assume the lease for the BHC Restaurant premises and purchase the franchisee's assets if the agreement is terminated for cause. These measures provide Bhc with significant control over the franchise and its assets in the event of a breach, allowing them to protect their brand and business interests.