If a Bhc franchisee and franchisor continue business relations after the franchise agreement is terminated, does this constitute an extension of the original agreement?

According to Bhc's 2025 Franchise Disclosure Document, any continuation of business relations between the franchisee and Bhc after the termination of the franchise agreement will not be considered a renewal, extension, or continuation of the original agreement. This means that if a franchisee and Bhc continue to interact or conduct business after the franchise agreement ends, it does not automatically imply that the original agreement is still in effect or has been prolonged.

This provision protects Bhc from implied renewals or extensions of the franchise agreement simply due to ongoing interactions. It provides clarity that a new agreement or understanding would be required to formally continue the franchise relationship. This is a fairly standard clause in franchise agreements, as it prevents ambiguity about the status of the relationship after the initial term or termination.

For a prospective Bhc franchisee, this clause highlights the importance of understanding the terms of the franchise agreement and the conditions under which it can be terminated. If a franchisee wishes to continue the relationship with Bhc after the agreement's expiration or termination, they would need to negotiate a new agreement rather than relying on continued business relations to imply an extension.