Can the Development Area granted by the Bhc MFA be altered?

According to Bhc's 2025 Franchise Disclosure Document, the Development Area granted by the Master Franchise Agreement (MFA) can only be altered if both Bhc and the franchisee mutually agree to the change. This provides a level of security for the franchisee, ensuring that Bhc cannot unilaterally reduce or modify the territory after the agreement is signed. The FDD also states that the franchisee will maintain rights to their territory and development area even if the population in those geographic areas increases. This protects the franchisee's investment from being diluted due to population growth.

However, Bhc retains the right to market and sell Bhc products and ancillary products under their proprietary trademarks or different trademarks at venues other than Master Franchise Bhc Restaurants and through other channels of distribution (including the Internet), within the franchisee's territory and anywhere else. Bhc is not required to pay compensation to the franchisee for soliciting or accepting orders in their territory at venues other than Master Franchise Bhc Restaurants or through other channels of distribution. This means that while the physical territory is protected, Bhc can still engage in online sales or sales through other venues within that territory without compensating the franchisee.

Bhc also has the right to develop or franchise captive locations, such as military bases, public transportation facilities, sports facilities, student unions, amusement and theme parks, malls, special events, hospitals, hotels, state or national parks, exhibition halls, conference facilities, casinos, esports events and venues, street fairs, and delivery facilities (e.g., ghost kitchens). These captive locations are excluded from the designated area, which means Bhc can operate or franchise these locations without impacting the franchisee's exclusive territory. The MFA can be terminated by Bhc if the franchisee fails to meet the Development Schedule, fails to comply with any other terms and conditions of the MFA, makes or attempts to make a transfer or assignment in violation of the MFA, or fails to comply with the terms and conditions of any individual MFA or of any other agreement to which the franchisee and Bhc or its affiliates are parties.