What is the condition for the Landlord to acknowledge the Franchisor's approval to locate its Franchised Bhc Restaurant on the Premises?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord hereby acknowledges that the provisions of this Addendum to Lease are required pursuant to the Franchise Agreement under which Tenant plans to operate its business and the Tenant would not lease the Premises without this Addendum.
Landlord further acknowledges that Tenant is not an agent or employee of Franchisor and the Tenant has no authority or power to act for, or to create any liability on behalf of, or to in any way bind Franchisor or any affiliate of Franchisor, and that Landlord has entered into this Addendum to Lease with full understanding that it creates no duties, obligations or liability of or against Franchisor or any affiliate of Franchisor, unless and until the Lease is assigned to, and accepted in writing by, Franchisor.
All notices to Franchisor required by this Addendum must be in writing and sent by registered or certified mail, postage prepaid, to the following address: BHC USA LLC, 3435 Wilshire Blvd., Suite 460, Los Angeles, CA 90010.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the landlord acknowledges that the provisions of the Addendum to Lease are required because of the Franchise Agreement. The landlord's acknowledgement is a condition of the tenant leasing the premises to operate a Bhc restaurant. The landlord also acknowledges that the tenant is not an agent or employee of Bhc and has no authority to bind Bhc in any way. The landlord agrees that the Addendum to Lease does not create any duties, obligations, or liability for Bhc unless the lease is assigned to and accepted in writing by Bhc.
This acknowledgement protects Bhc from potential liabilities or obligations arising from the franchisee's actions or the lease agreement itself. It ensures that the landlord understands the relationship between the franchisee and Bhc, and that Bhc is only bound by the lease if it explicitly assumes it. This is a standard practice in franchising to maintain a clear separation between the franchisor and franchisee's responsibilities.
Furthermore, all notices to Bhc required by the Addendum must be in writing and sent by registered or certified mail, postage prepaid, to BHC USA LLC, 3435 Wilshire Blvd., Suite 460, Los Angeles, CA 90010. This ensures that Bhc receives all necessary communications related to the lease agreement, allowing them to stay informed and take appropriate action if needed.