Does the Bhc franchise agreement require a guarantee, and if so, where can I find the Guarantee of Franchise Agreement exhibit in the FDD?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Each Principal Equity Operator (and their respective spouses, if applicable), must execute the Guarantee of Franchise Agreement attached as Exhibit 3 of this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to the 2025 Bhc Franchise Disclosure Document, the franchise agreement requires that each Principal Equity Operator (and their respective spouses, if applicable) must execute a Guarantee of Franchise Agreement. This guarantee is included as Exhibit 3 to the Franchise Agreement.
This requirement means that the financial and legal obligations of the Bhc franchise may extend beyond the business entity to the personal assets of the Principal Equity Operators and their spouses. By signing the guarantee, these individuals agree to be personally liable for the franchise's debts and obligations to Bhc.
Prospective franchisees should carefully review Exhibit 3 and understand the full scope of the guarantee, including the conditions under which it can be invoked and the potential personal financial risks involved. It is advisable to seek legal counsel to fully understand the implications before signing the Franchise Agreement and the Guarantee of Franchise Agreement.