Does Bhc's description of a breach in a notice limit Bhc from specifying additional breaches in legal proceedings related to the Bhc Franchise Agreement?

According to Bhc's 2025 Franchise Disclosure Document, the description of a breach in any notice served by Bhc does not prevent Bhc from specifying additional or supplemental breaches in legal proceedings. This applies to any action, arbitration, mediation, hearing, or suit relating to the Franchise Agreement or its termination. This means that even if Bhc initially cites a specific reason for default in a notice to the franchisee, Bhc retains the right to bring up other breaches or issues during legal proceedings.

This clause protects Bhc by ensuring they are not limited to the breaches initially mentioned in a notice. It allows Bhc to present a more comprehensive case if litigation arises. For a prospective franchisee, this means that any potential oversight or failure to comply with the franchise agreement could be brought up by Bhc in a legal setting, even if it wasn't the initial reason cited for the dispute.

Franchisees should be aware that Bhc has the right to expand on the reasons for default beyond the initial notice. This clause is fairly standard in franchise agreements, as it protects the franchisor's interests in fully addressing any and all breaches of contract. It is important for franchisees to maintain thorough records and ensure full compliance with all aspects of the franchise agreement to mitigate the risk of additional breaches being cited in legal proceedings.