If the Bhc Multi-Unit Master Franchise Agreement contains a provision inconsistent with California Business and Professions Code sections 20000 through 20043, which law will control?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
California Business and Professions Code sections 20000 through 20043 (the "Act") provide rights to you concerning termination, transfer or non-renewal of a franchise.
If the Multi-Unit Master Franchise Agreement contains a provision that is inconsistent with the Act, the Act will control.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if any provision in the Multi-Unit Master Franchise Agreement is inconsistent with California Business and Professions Code sections 20000 through 20043, those sections of the California code will take precedence. This is explicitly stated in the California-specific addendum to the franchise agreement. This ensures that franchisees in California receive the protections afforded to them under California law, regardless of what the standard franchise agreement might say.
This protection covers rights related to termination, transfer, and non-renewal of the franchise agreement. Bhc franchisees in California should be aware of these protections and understand that the California Business and Professions Code sections 20000 through 20043 will override any conflicting terms in the franchise agreement. This ensures that Bhc franchisees operating in California are afforded the full rights and protections under California law.
This type of clause is included to comply with California franchise law, which is particularly protective of franchisees. Prospective Bhc franchisees in California should carefully review both the franchise agreement and the relevant sections of the California Business and Professions Code with a legal professional to fully understand their rights and obligations.