Does the definition of 'Control' for a Bhc franchise include the power to direct the management and policies of an entity?

According to Bhc's 2025 Franchise Disclosure Document, the definition of 'Control' includes the power to direct the management and policies of an entity. Specifically, 'Control' means possessing the power, directly or indirectly, to direct or cause the direction of the management and policies of a person or entity. This power can be exerted through various means, such as ownership of voting securities or contractual agreements.

For a prospective Bhc franchisee, this definition is important because it clarifies what it means to have control over the franchise. It indicates that control is not limited to direct ownership but extends to any arrangement that allows someone to influence the management and policies of the franchise. This broad definition ensures that Bhc can identify and address any potential conflicts of interest or unauthorized influence over its franchises.

This definition of control is fairly standard in franchise agreements. It is important for Bhc to maintain consistent standards and practices across all franchise locations, and this definition helps ensure that franchisees adhere to the franchisor's guidelines and protect the brand's reputation. Franchisees should be aware of this definition and understand that any arrangement that gives another party the power to direct the management and policies of their franchise could be considered a violation of the franchise agreement.