Can the Franchisor assign the Bhc Guarantee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
It is understood and agreed by the undersigned that the provisions, covenants, and conditions of this Guarantee inure to the benefit of the Franchisor, its successors, and assigns. This Guarantee may be assigned by Franchisor voluntarily or by operation of law without reducing or modifying the liability of the undersigned hereunder.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the guarantee may be assigned by Bhc. The guarantee can be assigned either voluntarily or by operation of law. This assignment can occur without reducing or modifying the liability of the guarantor.
For a prospective Bhc franchisee, this means that if a guarantee is required as part of the franchise agreement, Bhc has the right to transfer the benefits of that guarantee to another party. This could be relevant if Bhc is sold, merges with another company, or otherwise transfers its assets.
The franchisee should be aware that the obligations under the guarantee will continue even if the guarantee is assigned to a new party. This clause ensures that Bhc retains maximum flexibility in its business dealings without diminishing the protections afforded by the guarantee.