Can the Bhc Franchisor assign the Guarantee?

According to Bhc's 2025 Franchise Disclosure Document, the Guarantee may be assigned by Bhc, either voluntarily or by operation of law. This assignment can occur without reducing or modifying the liability of the guarantor. This condition applies both to franchise agreements and master franchise agreements.

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 that guarantee to another party. This could be relevant if Bhc is sold, merges with another company, or otherwise transfers its assets. The guarantor's obligations under the guarantee would continue even if Bhc assigns the guarantee to a third party.

This clause ensures that Bhc retains flexibility in its business operations and potential restructuring without losing the protection afforded by the guarantee. Franchisees should be aware that the guarantee they provide could be enforced by a different entity than the one they initially contracted with. It is important for franchisees to fully understand the implications of the guarantee and to seek legal counsel if they have any questions or concerns.