What financial information must a Bhc franchisee submit to the franchisor annually?

According to Bhc's 2025 Franchise Disclosure Document, franchisees must submit specific financial information annually. Within 90 days after the end of each fiscal year, or any permitted extension for filing, a franchisee must submit a copy of Schedule C (Form 1040 Profit or Loss From Business) or an equivalent portion of their federal tax return that relates to the franchised Bhc restaurant and its operation. This requirement ensures that Bhc has access to the franchisee's financial performance data for the restaurant.

In addition to the annual tax return information, Bhc franchisees may also be required to submit other financial or statistical reports, records, statements, or information as requested by Bhc in writing or as required in the Operations Manual. These additional reports must be submitted no later than ten business days after Bhc's request. All financial or statistical information provided must be accurate and correct in all material respects.

Failure to submit the required annual tax information or any other requested reports in a timely manner can result in penalties. Bhc may impose a "Failure to Submit Required Report Fee" of $200 per week until the required reports are submitted. Moreover, if an audit is triggered by the franchisee's failure to furnish required information or documents in a timely manner, and it takes Bhc's auditors more than eight hours to assemble the franchisee's records, the franchisee must reimburse Bhc for the cost of the audit. These measures highlight the importance of franchisees maintaining accurate records and adhering to Bhc's reporting requirements.