What consequences does Bhc specify for making a false statement on the Acknowledgment?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Prospective Franchisee acknowledges that any false statement, in whole or in part, on this Acknowledgment shall be considered sufficient cause to deny any further consideration or cause revocation and termination of any agreement signed at any time with BHC, and to the extent permissible by such agreement or law, BHC shall have the right to exercise any and all remedies available to it at law or in equity, including specific performance and damages (including liquidated).
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, providing a false statement on the Acknowledgment form can lead to serious repercussions for prospective franchisees. Bhc states that any false statement, even partially untrue, is sufficient grounds to deny further consideration of the franchise application. This means Bhc can halt the application process and refuse to move forward with the individual or entity.
Furthermore, Bhc reserves the right to revoke and terminate any agreements already signed with the prospective franchisee if a false statement is discovered on the Acknowledgment. This could include the franchise agreement itself or any other related contracts. The consequences extend beyond simple termination, as Bhc retains the right to pursue all available legal remedies.
Bhc explicitly states it can exercise any and all remedies available at law or in equity. This includes seeking specific performance, which would compel the franchisee to fulfill their obligations under the agreement, and claiming damages, including liquidated damages, to compensate for any losses suffered due to the false statement. This clause underscores the importance of honesty and accuracy when completing the Acknowledgment form, as any misrepresentation can have significant legal and financial ramifications for the prospective Bhc franchisee.