Is a Bhc franchisee required to obtain and maintain permits, certificates, or licenses to operate the franchised restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
8.11 Compliance with Laws.
- (a) Franchisee must always (i) operate the Franchised BHC Restaurant and the Franchised Business in compliance with all applicable laws, rules, and regulations of applicable government authorities, (ii) comply with all applicable wage, hour and other laws and regulations of federal, state, or local governments, (iii) prepare and file all necessary tax returns, and (iv) pay promptly all taxes imposed upon Franchisee or upon Franchisee's business or property. Franchisee represents and warrants it will obtain and always maintain the permits, certificates, or licenses necessary to operate the Franchised BHC Restaurant and conduct the Franchised Business in the city, county, and state where the Franchised BHC Restaurant is located.
- (b) Franchisee must immediately notify Franchisor of any litigation, arbitration, disciplinary action, criminal proceeding, or any other legal proceeding or action brought against or involving Franchisee, or any entity affiliated with Franchisee, or any agent, employee, owner, director or partner of Franchisee, which notification must include all relevant details in respect thereof, according to the procedures set forth in the Operations Manual.
8.12 Web Site and Internet Marketing.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees are indeed responsible for obtaining and maintaining all necessary permits, certificates, and licenses required to operate their franchised restaurant. This includes ensuring compliance with all applicable laws, rules, and regulations set by government authorities at the federal, state, and local levels. Franchisees must also comply with wage, hour, and other labor laws.
Specifically, the franchisee is responsible for securing zoning classifications, permits, clearances, certificates of occupancy, and center clearances mandated by governmental bodies. Additionally, if the Bhc restaurant intends to serve beer and wine, the franchisee must obtain and maintain the necessary licenses and permits from the relevant state or local agency. The costs associated with these licenses and permits are the franchisee's responsibility.
Furthermore, the franchisee must use licensed general contractors, designers, vendors, and architects accepted by Bhc for any leasehold improvements. The franchisee also needs to secure a certificate of occupancy (or equivalent) from the local government before commencing operations. Failing to obtain and maintain the required permits and licenses can lead to legal issues and potential disruptions to the business, so it is a critical aspect of operating a Bhc franchise.