What does 'Franchised Bhc Restaurant' mean in the context of the Multi-Unit Master Franchise Agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ss and be fully operational within 180 days after the initial occurrence of the event resulting in such inactivity, or such longer period as Franchisor may permit.
- "Affiliate" means in relation to a party, any Person Controlling, Controlled by or under common Control with such party, either directly or indirectly through one or more intermediaries.
- "Franchised BHC Restaurant" means a BHC Restaurant that is or will be established and operated by an Affiliate of Master Franchisee.
- "Agreement" means this Multi-Unit Master Franchise Agreement and all instruments amending this Multi-Unit Master Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a "Franchised BHC Restaurant" refers to a Bhc restaurant that is established and operated by an affiliate of the Master Franchisee. This definition is important within the context of the Multi-Unit Master Franchise Agreement, as it clarifies who is authorized to operate a Bhc restaurant under the master franchise.
This means that while the Master Franchisee might not directly operate the restaurant, they can do so through a business entity they control. This structure allows for flexibility in how the Master Franchisee organizes their business operations. The agreement also specifies that the Master Franchisee must open at least one Franchised Bhc Restaurant before granting rights to third-party Subfranchisees.
For a prospective Master Franchisee, this definition highlights the importance of understanding the relationship between the Master Franchisee and any affiliated entities. It also emphasizes the Master Franchisee's responsibility for ensuring that any affiliated entity operating a Bhc restaurant adheres to the standards and guidelines set forth in the franchise agreement. This also means that the Master Franchisee needs to open one store before sub-franchising to anyone else.