Must a Bhc franchisee ensure that their Affiliate Franchisee and Subfranchisees do not use the premises of their Bhc Restaurants for any purpose other than the operation of a Bhc Restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, you must ensure that your Affiliate Franchisee and your Subfranchisees offer and sell from their BHC Restaurants all of the products and services that we periodically require or approve, and ensure that they do not offer or sell from their BHC Restaurants any unapproved products or services. You also must ensure that your Affiliate Franchisee and your Subfranchisees do not use the premises of their BHC Restaurants for any purpose other than the operation of a BHC Restaurant.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 43)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must ensure that their Affiliate Franchisee and Subfranchisees do not use the premises of their Bhc Restaurants for any purpose other than operating a Bhc Restaurant. This restriction is in place to maintain the brand's consistency and focus.
This requirement means that franchisees, along with their Affiliate Franchisees and Subfranchisees, are prohibited from using the Bhc Restaurant locations for any activities outside of the approved Bhc business. This could include, for example, running a separate, unapproved business from the same location or using the space for personal storage or activities unrelated to the restaurant.
The purpose of this restriction is to ensure that all Bhc locations maintain a consistent brand image and customer experience. By limiting the use of the premises to the operation of the Bhc Restaurant, the company can control the quality and type of activities conducted at each location, protecting the brand's reputation and ensuring compliance with the franchise agreement.