What is a Bhc franchisee required to represent and warrant regarding permits, certificates, or licenses necessary to operate the franchised restaurant?

According to Bhc's 2025 Franchise Disclosure Document, a franchisee must represent and warrant that they will obtain and always maintain all necessary permits, certificates, and licenses required to operate the franchised Bhc restaurant and conduct the franchised business. This includes ensuring compliance with all applicable laws, rules, and regulations set forth by government authorities at the federal, state, and local levels.

This requirement places a significant responsibility on the franchisee to understand and adhere to all legal and regulatory obligations related to the operation of a Bhc restaurant. It is crucial for prospective franchisees to thoroughly research and understand the specific requirements in their city, county, and state to ensure they can meet these obligations. Failure to obtain or maintain the necessary permits and licenses could result in fines, penalties, or even the closure of the restaurant.

Furthermore, the franchisee must promptly pay all taxes imposed on them or their business and property, and immediately notify Bhc of any legal proceedings or actions brought against them or their affiliated entities. This ensures that Bhc is aware of any potential legal issues that could affect the brand or the franchisee's ability to operate the business. This compliance extends to all aspects of the business, including wage and hour laws, tax filings, and operational regulations.

In essence, this representation and warranty underscores the franchisee's commitment to operating a legally compliant and responsible Bhc restaurant. It highlights the importance of due diligence and ongoing compliance efforts to maintain the integrity of the franchise and protect the interests of both the franchisee and the franchisor.