What constitutes 'Control' according to Bhc's definition within the Acknowledgment?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| Your Assets: | Your Liabilities: |
|---|---|
| Cash in bank: | Bills Payable: |
| Value of Home if owned: | Home Mortgage: |
| Savings: | Other Mortgage: |
| Vehicles: | Other Obligations: |
| Existing Business (Sale Value): | |
| Money Due to You: | |
| Other Assets: | |
| Total Assets: | Total Liabilities: |
| Net Worth: | |
| Are you subject to any court judgments?YesNo. If yes, please give details: | |
| E. | |
| References | |
| Credit References | Personal References |
| (e.g., Bank, Suppliers, Accountant) | (Someone who has known you for at least 2 years) |
| 1. | 1. |
| 2. | 2. |
| Bank Details | |
| Bank Name: | |
| Account Number: | |
| Address: |
ACKNOWLEDGEMENT
- A. The Prospective Franchisee represents, warrants and covenants to BHC USA LLC ("BHC") that all of the following matters are true and accurate as of the date of execution of this Acknowledgment and Authorization for Background Check ("Acknowledgment"):
-
- No Prospective Franchisee and his/her/its Aff
-
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the definition of 'Control' within the Acknowledgment section pertains to the power to direct the management and policies of a person or entity. This control can be exerted directly or indirectly.
The definition specifies that this power can be manifested through various means, including the ownership of voting securities. This implies that holding a sufficient number of shares that grant voting rights can constitute control.
Furthermore, 'Control' can also be established 'by contract or otherwise.' This broadens the scope beyond ownership, suggesting that contractual agreements or other arrangements that grant the power to dictate management and policies also fall under the definition of control. This is relevant to ensure that prospective franchisees are not connected to prohibited persons or entities that could exert undue influence over the franchise operations, potentially compromising the integrity and standards of the Bhc system.