In the event of a conflict between the lease terms and the addendum terms, which terms govern the Bhc franchise?

According to Bhc's 2025 Franchise Disclosure Document, in the event of a conflict between the lease and the addendum to the lease, the terms set forth in the addendum will govern. This is to ensure that the provisions required by the Franchise Agreement are upheld. The landlord acknowledges that the addendum is a requirement of the Franchise Agreement and that the tenant (franchisee) would not lease the premises without it.

This clause protects Bhc's interests by ensuring that the franchise agreement takes precedence over standard lease terms, which might not align with the franchisor's requirements. This is particularly important for maintaining uniformity and brand standards across all Bhc locations. The landlord also acknowledges that the franchisee is not an agent or employee of Bhc and has no power to bind Bhc unless the lease is assigned to and accepted by Bhc in writing.

This provision is beneficial for a prospective Bhc franchisee because it clarifies the hierarchy of agreements and ensures that the terms favorable to the franchise operation, as outlined in the addendum, will take precedence over potentially conflicting terms in the standard lease. This reduces the risk of disputes arising from lease terms that could hinder the franchisee's ability to operate the business according to Bhc's standards.