Is the Bhc Franchisor bound by all amendments to the lease executed by the tenant?

According to Bhc's 2025 Franchise Disclosure Document, if Bhc assumes a tenant's lease, it is generally bound by the duties and obligations of the lease applicable to the tenant. However, Bhc has the option not to assume or be bound by any amendments to the lease that the tenant executed without Bhc's prior written approval. This approval cannot be unreasonably withheld or delayed.

This provision offers Bhc some flexibility when assuming a lease. It protects Bhc from being bound by lease amendments that a tenant may have agreed to without Bhc's knowledge or consent. This is particularly important because these amendments could potentially include unfavorable terms or conditions that Bhc would not have agreed to.

For a prospective Bhc franchisee, this clause in the lease addendum is beneficial. It ensures that Bhc has the ability to review and approve any lease amendments before assuming the lease, providing a safeguard against unexpected or detrimental obligations. Franchisees should ensure that all lease amendments are communicated to Bhc for their review and approval to avoid any potential issues in the event Bhc needs to assume the lease.