What is Bhc Franchisee's obligation if any representations and warranties in section 16.12 become incorrect?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(g) Franchisee must notify Franchisor in writing within 10 business days after Franchisee receives actual notice of the commencement of any investigation, action, suit, or other proceeding, or the issuance of any order, writ, injunction, award, or other decree of any court, agency, or other governmental authority that pertains to the Franchised BHC Restaurant or the Franchised Business, or that may adversely affect Franchisee's operations at the Franchised BHC Restaurant or Franchisee's ability to meet its obligations under this Agreement.
(h) If anything occurs at the Franchised BHC Restaurant or in the Territory that causes or may cause harm or injury to retail customers or Franchisee's employees, or that may damage the System, Marks, or image or reputation of the Franchised Business or Franchisor or Franchisor's affiliates, Franchisee must immediately inform Franchisor's designated contact person by telephone, e-mail, text, or other electronic messaging medium authorized by Franchisor for this purpose.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
I am unable to provide information on the franchisee's obligations if any representations and warranties in section 16.12 become incorrect, as this information is not present in the provided excerpts from Bhc's 2025 Franchise Disclosure Document. The excerpts do not contain any sections numbered 16.12, nor do they discuss the procedure if representations and warranties become incorrect.
However, the excerpts do contain information regarding franchisee representations and warranties in section 18.1, as well as franchisee obligations regarding notifications to the franchisor. Specifically, franchisees must notify Bhc in writing within 10 business days after receiving notice of any investigation, action, suit, or proceeding that pertains to the franchised business or may adversely affect the franchisee's operations or ability to meet obligations under the agreement. Franchisees must also immediately inform Bhc of anything that occurs at the franchised restaurant or territory that may cause harm or injury to customers or employees, or that may damage the system, marks, or reputation of the business or franchisor.
A prospective franchisee should ask Bhc about the specific obligations related to correcting representations and warranties, what procedures to follow, and what liabilities might arise from incorrect statements. This information is crucial for understanding the full scope of responsibilities and potential risks associated with the franchise agreement.