What is a Bhc Franchisee required to do upon receiving notice of deficiencies from the Franchisor?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon notice from Franchisor or Franchisor's representatives, Franchisee must immediately begin such steps as may be necessary to correct any deficiencies noted during any such inspection.
Franchisor's representatives may re-inspect Franchisee's Franchised BHC Restaurant (or other facility, if applicable) to ensure noted deficiencies have been corrected.
If the deficiencies have not been corrected by the time of the initial re-inspection, Franchisor's representatives may make additional re-inspections thereafter until noted deficiencies have been corrected or deem the Franchisee to be in material breach.
Franchisee shall be responsible for all accommodation, transportation, meals, daily allowances, and other costs and expenses for the Franchisor's personnel in connection with such re-inspections.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if the franchisor or its representatives notify a franchisee of any deficiencies noted during an inspection, the franchisee must immediately begin taking steps to correct those deficiencies.
Bhc's representatives may conduct re-inspections to ensure that the franchisee has corrected the previously noted issues. If the deficiencies are not corrected by the time of the initial re-inspection, Bhc's representatives may conduct additional re-inspections until the issues are resolved or until Bhc deems the franchisee to be in material breach of the franchise agreement.
The franchisee is responsible for covering all accommodation, transportation, meals, daily allowances, and other costs and expenses incurred by Bhc's personnel during these re-inspections. This could potentially create a financial burden for the franchisee if deficiencies are not resolved promptly.