Does the Bhc Franchise Agreement require a confidentiality and non-competition agreement as an exhibit?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| 16.3 | Franchisee's Relationship to Franchisor as Franchisee | 48 - |
|---|---|---|
| 16.4 | No Third-Party Beneficiaries. | 49 - |
| 16.5 | Survival of Covenants. | 49 - |
| 16.6 | Successors and Assigns | 49 - |
| 16.7 | Joint and Several Liabilities. | 49 - |
| 16.8 | Titles for Convenience Only. | 49 - |
| 16.9 | Gender. | 49 - |
| 16.10 | Severability; Partial Invalidity. | 49 - |
| 16.11 | Counterparts | 50 - |
| 16.12 | Compliance with U.S. Anti-Terrorism and Other U.S. Federal Laws | 50 - |
| 16.13 | Governing Law. | 51 - |
| 16.14 | Entire Agreement | 51 - |
| 17. | EFFECTIV |
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Franchise Agreement includes a Confidentiality and Non-Competition Agreement as an exhibit. Specifically, Exhibit 4 to the Franchise Agreement is the Confidentiality and Non-Competition Agreement. This implies that franchisees and potentially their Principal Equity Operators are required to sign this separate agreement in addition to the main Franchise Agreement.
The inclusion of a separate Confidentiality and Non-Competition Agreement as an exhibit emphasizes the importance Bhc places on protecting its confidential information and preventing unfair competition. This agreement likely contains detailed terms and conditions regarding what constitutes confidential information, the scope of the non-competition restrictions, and the remedies available to Bhc in case of a breach.
Prospective Bhc franchisees should carefully review Exhibit 4 to understand their obligations regarding confidentiality and non-competition, both during the term of the franchise agreement and after its termination or expiration. Understanding the specific restrictions and obligations outlined in the Confidentiality and Non-Competition Agreement is crucial for franchisees to avoid potential legal issues and ensure compliance with Bhc's requirements.