Does the Franchisor reserve the right to approve potential Bhc Subfranchisees and Bhc Restaurants?

According to Bhc's 2025 Franchise Disclosure Document, the franchisor retains the right to approve potential subfranchisees and restaurant locations. While the master franchisee conducts an initial approval process to ensure that potential subfranchisees and restaurant sites meet Bhc's minimum requirements, Bhc reserves the right to make the final decision. This approval extends to any amendments or supplements to these requirements that Bhc may implement over time.

This approval process does not guarantee the success of the subfranchisee or the restaurant. It only indicates that the candidates and locations meet Bhc's minimum standards at the time of approval. The master franchisee must also get Bhc's approval for the form of the Subfranchise Agreement and any other related agreements before they are used with a prospective subfranchisee.

Bhc also reserves the right to approve any modifications to these approved forms. The master franchisee is obligated to include terms and conditions in their subfranchise agreements that are consistent with the master franchise agreement and as prescribed by Bhc. This includes adhering to the maximum territory size granted under any Subfranchise Agreement. Executed copies of all Subfranchise Agreements and related documents must be sent to Bhc for their records before the subfranchised restaurant opens.