Can Bhc disclose information about a franchisee's operation, such as Gross Revenues, to prospective franchisees?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisor may disclose information relating to Franchisee's operation of the Franchised Business, including, but not limited to, Gross Revenues, customer counts, and other related data, to future prospective franchisees.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc may disclose information about a franchisee's business operations to potential future franchisees. This includes, but isn't limited to, Gross Revenues, customer counts, and other related data.
This clause in the franchise agreement allows Bhc to share specific performance metrics of existing franchises with individuals who are considering investing in a Bhc franchise. This practice is relatively common in the franchise industry, as it provides transparency and allows prospective franchisees to assess the potential profitability and operational aspects of the business based on real-world examples.
For a prospective franchisee, this means that during their due diligence, Bhc might provide them with data from current franchisees, such as revenue figures and customer numbers. While this can be beneficial in making an informed decision, it's important to remember that past performance is not necessarily indicative of future results. Market conditions, location, and the franchisee's management skills can all significantly impact the success of a franchise. Therefore, prospective franchisees should carefully analyze any data provided and conduct their own independent research and projections.
It is also important to note that while Bhc reserves the right to share this information, they are not obligated to do so. The extent and type of data shared may vary. A prospective franchisee should inquire about the availability of such information and understand the context in which it is being presented.