What happens if the location of the Master Franchisee's Bhc restaurant is not determined when the Master Franchise Agreement is signed?

According to Bhc's 2025 Franchise Disclosure Document, if the location of the initial Franchised Bhc Restaurant is not determined when the Master Franchise Agreement is signed, the exact location will be added to the agreement later. Specifically, once the location is determined, it will be inserted into a restated Exhibit 1, which will then be attached to the Master Franchise Agreement. This ensures that the agreement is updated to reflect the agreed-upon location as soon as it is finalized.

Bhc requires the Master Franchisee to open at least one franchised Bhc Restaurant before granting rights to subfranchisees. The Master Franchisee is responsible for finding and securing a location that meets Bhc's standards. This location must be reviewed and approved by Bhc within four months of the agreement's effective date. The Master Franchisee must submit site information to Bhc for review and reimburse Bhc for any costs incurred during the review process.

If Bhc rejects a proposed site, the Master Franchisee must promptly propose an alternative location. Bhc does not locate sites for the Master Franchisee but may offer assistance for a reasonable fee. If the Master Franchisee fails to secure an acceptable site within four months of the agreement's effective date, Bhc has the right to cancel the Master Franchise Agreement. This clause highlights the importance of timely site selection and approval in the master franchising process.