What information is contained in Exhibit G of the Bhc Franchise Disclosure Document?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
EXHIBIT "G"
BHC USA LLC
STATE SPECIFIC ADDENDA
EXHIBIT "G" APPENDIX FOR CALIFORNIA FRANCHISEES
The registration of this franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the commissioner.
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.
Section 31125 of the California Corporations Code requires the franchisor to give you a disclosure document, approved by the Department of Financial Protection and Innovation before a solicitation of a proposed material modification of an existing franchise.
The Multi-Unit Master Franchise Agreement provides for termination upon bankruptcy.
This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. §101 et seq.)
The Multi-Unit Master Franchise Agreement contains a covenant not to compete that extends beyond the termination of the franchise.
This provision may not be enforceable under California Law.
The Multi-Unit Master Franchise Agreement requires you to execute a general release of claims upon transfer of the Multi-Unit Master Franchise Agreement.
California Corporations Code section 31512 provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of that law or any rule or order is void.
Section 31512 voids a waiver of your rights under the Franchise Investment Law (Corporations Code §§31000-31516).
Business and Professions Code section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code §§20000-20043).
The California Franchise Investment Law requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the disclosure document.
Source: Item 22 — Contracts (FDD page 52)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Exhibit G contains state-specific addenda. Specifically, the FDD includes an appendix for California franchisees. This appendix outlines several important considerations for franchisees operating in California, referencing California Business and Professions Code sections 20000 through 20043, which provide rights concerning termination, transfer, or non-renewal of a franchise.
The addendum clarifies that if any provision in the Multi-Unit Master Franchise Agreement is inconsistent with the Act, the Act will take precedence. It also mentions Section 31125 of the California Corporations Code, requiring the franchisor to provide a disclosure document approved by the Department of Financial Protection and Innovation before soliciting a proposed material modification of an existing franchise.
Furthermore, the exhibit addresses the enforceability of certain provisions under California law, such as termination upon bankruptcy, covenants not to compete extending beyond the franchise term, and the requirement to execute a general release of claims upon transfer of the Multi-Unit Master Franchise Agreement. It emphasizes that California law voids waivers of rights under the Franchise Investment Law and the Franchise Relations Act. Finally, it notes that California law requires a copy of all proposed agreements relating to the sale of the franchise to be delivered with the disclosure document.