What is the deadline for a Bhc Master Franchisee to notify the Franchisor in writing of any breach of a Subfranchise Agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
i. undertakes to ensure that each Subfranchisee complies with the respective Subfranchise Agreement at all times, and to notify Franchisor promptly in writing if there is any breach of any term of any Subfranchise Agreement and/or this Agreement and, in any event, no later than fourteen (14) days of any such occurrence. Master Franchisee agrees that any act or omission of any Subfranchisee which is inconsistent with the terms of this Agreement or any Subfranchise Agreement will be deemed a breach of this Agreement by Master Franchisee;
- ii. is not discharged or relieved from any obligation or liability arising under this Agreement by entering into any Subfranchise Agreement;
- iii. is liable to Franchisor for the acts, omissions, defaults and negligence of each Subfranchisee, or each Subfranchisee's personnel, as fully as if they were the acts, defaults or negligence of Master Franchisee or Master Franchisee's personnel.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must promptly notify Bhc in writing if there is any breach of any term of any Subfranchise Agreement. The notification deadline is no later than fourteen (14) days of any such occurrence. This requirement ensures that Bhc is kept informed of any issues arising within the subfranchise network.
This notification requirement is crucial because any act or omission of a Subfranchisee that is inconsistent with the terms of the Master Franchise Agreement or any Subfranchise Agreement will be deemed a breach of the Master Franchise Agreement by the Master Franchisee. This means the Master Franchisee is held responsible for the actions of their Subfranchisees.
The Master Franchisee is also liable to Bhc for the acts, omissions, defaults, and negligence of each Subfranchisee, or each Subfranchisee's personnel, as if they were the acts, defaults, or negligence of the Master Franchisee or the Master Franchisee's personnel. This underscores the importance of the Master Franchisee's role in overseeing and ensuring the compliance of their Subfranchisees with the terms of their agreements.
In practical terms, a prospective Master Franchisee for Bhc must establish robust monitoring and reporting systems to ensure timely detection and reporting of any breaches by Subfranchisees. Failing to do so could result in the Master Franchisee being held liable for the Subfranchisee's actions and potentially breaching their own agreement with Bhc.