If the Bhc franchisee is an entity, what warranty does the franchisee make regarding the consents, approvals, licenses, and permits needed to carry out the business activities?

According to Bhc's 2025 Franchise Disclosure Document, the franchisee must secure and maintain all necessary permits, certificates, and licenses to operate the franchised restaurant. The franchisee represents and warrants that it will obtain and always maintain the permits, certificates, or licenses necessary to operate the Franchised BHC Restaurant and conduct the Franchised Business in the city, county, and state where the Franchised BHC Restaurant is located. This includes compliance with all applicable laws, rules, and regulations of government authorities, as well as wage, hour, and other labor laws.

This requirement means that a prospective Bhc franchisee bears the full responsibility for ensuring their restaurant complies with all local, state, and federal regulations. This includes zoning, building codes, health permits, and any other licenses required to run a food service business. Failure to obtain or maintain these permits could result in fines, legal action, or even the closure of the restaurant.

Furthermore, the franchisee must notify Bhc immediately of any legal proceedings or actions against them or their affiliated entities, including details of any litigation, arbitration, or criminal proceedings. This ensures Bhc is aware of any potential legal issues that could affect the brand's reputation or the franchisee's ability to operate the business. The franchisee's warranty extends to ongoing compliance, not just initial setup, highlighting the continuous responsibility of maintaining all necessary operational credentials.