Which FDD item covers the Grant of Master Franchise for Bhc?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
3. GRANT OF MASTER FRANCHISE
3.1 Grant of Master Franchise.
Subject to the terms and conditions of this Agreement, Franchisor hereby grants to Master Franchisee:
- (a) the exclusive, non-transferable right and license to, (a) establish and operate at least one (1) Franchised BHC Restaurant through Master Franchisee's Affiliate, and (b) after opening at least one (1) Affiliate Franchised BHC Restaurant, to grant subfranchises to Subfranchisees to establish and operate Subfranchised BHC Restaurants in accordance by entering Subfranchise Agreements to establish and operate BHC Restaurants using the BHC System and IP Rights, and in accordance with the Operating Manuals ("Development Rights") with the schedule of openings attached hereto as Exhibit 1 (the "Development Schedule") and within the geographical area (the "Development Area") indicated in the Development Schedule.
- (b) So long as Master Franchisee's obligations under the Development Schedule are being met on a timely basis and until this Agreement terminates, Franchisor will not itself operate a BHC Restaurant within the Development Area, nor allow any of its affiliates or other BHC franchisees to do so. Captive locations will be excluded from Master Franchisee's Development Area and Franchisor has the right to develop or franchise the following Captive location locations: (1) military bases; (2) public transportation facilities; (3) sports facilities, including race tracks; (4) student unions or other similar buildings on college or university campuses; (5) amusement and theme parks; (6) malls; (7) special events; (8) hospitals; (9) hotel, resort, or other lodging facility; (10) state or national parks; (11) exhibition hall; conference facility or convention center; (12) casino or gambling establishment; (13) esports events and venues; (14) street fairs; (15) delivery facilities (e.g.,, ghost kitchens) or (16) any similar area to the sites referenced herein n (collectively, "Captive locations"). Franchisor may not alter the Development
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Item 23 covers the grant of a master franchise. Specifically, section 3.1 details the grant of the master franchise by Bhc to the master franchisee.
The grant provides the master franchisee with the exclusive, non-transferable right to establish and operate at least one Bhc restaurant through their affiliate. After opening at least one affiliate restaurant, the master franchisee can grant subfranchises to subfranchisees to establish and operate Bhc restaurants. These rights are subject to the terms and conditions outlined in the agreement, the use of Bhc's system and intellectual property rights, and compliance with the operating manuals. The grant is also subject to a development schedule and applies within a specific geographical area.
Bhc retains the right to operate or franchise captive locations, such as military bases, transportation facilities, sports facilities, college campuses, amusement parks, malls, special events, hospitals, hotels, state/national parks, convention centers, casinos, esports venues, street fairs, and delivery facilities. These captive locations are excluded from the master franchisee's development area, and Bhc is not allowed to alter the development.