What must Bhc franchisees ensure regarding the staffing of their Affiliate Franchisee and Subfranchisees?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ll pass through to the Master Franchisees. Beyond these discounts, Franchisor do not provide material benefits to Master Franchisee because of Master Franchisee's use of approved suppliers.
8. OPERATION OF FRANCHISED BUSINESS
8.1 Operational Requirements.
- (a) At all times, and subject to applicable state law and regulations, Master Franchisee must be, or employ, a General Manager who will devote his or her entire time during normal business hours, as defined in the Operations Manual, to the management, operation, and development of the Franchised Business. The General Manager must ensure that Master Franchisee fulfill its obligations to Master Franchisee's customers in a timely and professional manner and he or she may not engage in any other business requiring his or her active participation during normal business hours. At least one Principal Equity Operator, with or through the General Manager, must participate personally in the direct operation of the Master Franchise Business.
- (b) Master Franchisee must, and ensure that your Subfranchisees, sell to customers BHC Products and other food and beverages specified in Franchisor's then authorized menu, and related products and accessories supplied by designated vendors and approved suppliers for resale at the BHC Restaurants in accordance with this Agreement and the Operations Manual (as periodically amended by Franchisor). Master Franchisee must only operate the Franchised Business at a Franchised BHC Restaurant, and ensure the Subfranchisees only operate their Business, in strict accordance with the procedures set forth in the Operations Manual or otherwise provided to Master Franchisee by Franchisor in writing. Master Franchisee must, and ensure the Subfranchisee, maintain an adequate level of supplies and inventory in order to properly operate the BHC Restaurant. Online ordering by customers of BHC
Products may only be made through the authorized page on Franchisor's website. Master Franchisee must, and ensure the Subfranchisee, use the standard signs and formats that Franchisor prescribes in operating the BHC Restaurant and conducting the Franchised Business.
- (c) To protect and maintain the integrity, reputation and goodwill of the System and the Marks, Franchisor requires that Master Franchisee comply, and ensure that Subfranchisees comply, with the methodology Franchisor prescribes in providing BHC Products to customers. To enhance uniformity in the delivery of goods and services to retail customers by Franchisor's Master Franchisees and the strength of Franchisor's Marks in inter-brand competition, and subject to applicable federal and state antitrust laws, Franchisor may recommend retail prices for specific BHC Products and other products and services Franchisor authorize for sale at a BHC Restaurant. If Franchisor does so, Master Franchisee may not, and ensure that Subfranchisees do not, advertise or promote (whether by telephone, printed materials, or any other media, including social media) retail prices that are inconsistent with these recommended prices.
Source: Item 15 — Obligation to Participate in The Actual Operation of The Franchise Business (FDD pages 42–43)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must ensure that their Subfranchisees sell only authorized Bhc products and other specified food and beverages from approved suppliers. These sales must align with the franchise agreement and the Operations Manual, which Bhc can amend periodically. The Master Franchisee must also ensure Subfranchisees maintain adequate supplies and inventory to properly operate the Bhc Restaurant. Online ordering must be done through Bhc's official website, and Subfranchisees must use the standard signs and formats prescribed by Bhc.
Furthermore, the Master Franchisee must ensure that Subfranchisees comply with Bhc's prescribed methodology for providing products to customers, maintaining the integrity and reputation of the Bhc system and brand. Additionally, the Master Franchisee is responsible for ensuring that Sublicensees employ and maintain enough security personnel on and near the Bhc Restaurant premises to provide adequate care and custody of Master Franchisee's customers.
Prior to appointing any Subfranchisee, the Master Franchisee must conduct an approval process, including background checks, to confirm that each potential Subfranchisee and each potential Bhc Restaurant meets all of Bhc's then-current minimum requirements for new subfranchisees and new Bhc Restaurants, as these requirements may be amended or supplemented by Bhc. Bhc also reserves the right to approve any or all potential Subfranchisees and potential Bhc Restaurants. This ensures that all Subfranchisees meet the standards set by Bhc, maintaining consistency and quality across all locations.