What is the deadline for the Master Franchisee to notify Bhc 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;
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 notify Bhc promptly 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 between the Master Franchisee and its Subfranchisees. This allows Bhc to take appropriate action to protect its brand and system standards. The agreement stipulates that any action or failure to act by a Subfranchisee that violates the terms of the agreement or any Subfranchise Agreement will be considered a breach of the agreement by the Master Franchisee.
This clause places a significant responsibility on the Master Franchisee to actively monitor and manage its Subfranchisees. The Master Franchisee is essentially held accountable for the actions of its Subfranchisees, emphasizing the importance of careful Subfranchisee selection and ongoing oversight. The relatively short 14-day notification window underscores the need for Master Franchisees to have systems in place for promptly detecting and reporting any breaches.