What laws, rules, and regulations must a Bhc franchisee comply with when operating the franchised restaurant and business?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
8.11 Compliance with Laws.
- (a) Franchisee must always (i) operate the Franchised BHC Restaurant and the Franchised Business in compliance with all applicable laws, rules, and regulations of applicable government authorities, (ii) comply with all applicable wage, hour and other laws and regulations of federal, state, or local governments, (iii) prepare and file all necessary tax returns, and (iv) pay promptly all taxes imposed upon Franchisee or upon Franchisee's business or property. Franchisee represents and warrants 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.
- (b) Franchisee must immediately notify Franchisor of any litigation, arbitration, disciplinary action, criminal proceeding, or any other legal proceeding or action brought against or involving Franchisee, or any entity affiliated with Franchisee, or any agent, employee, owner, director or partner of Franchisee, which notification must include all relevant details in respect thereof, according to the procedures set forth in the Operations Manual.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees must operate their franchised restaurant and business in compliance with all applicable laws, rules, and regulations from all government authorities. This includes adhering to wage and hour laws at the federal, state, and local levels. Franchisees are also responsible for preparing and filing all necessary tax returns and paying all taxes imposed on their business or property.
Bhc franchisees must obtain and maintain all necessary permits, certificates, and licenses required to operate the restaurant in their specific city, county, and state. Furthermore, franchisees are obligated to immediately inform Bhc of any legal proceedings or actions against them, their affiliated entities, or their agents, employees, owners, directors, or partners, providing all relevant details as outlined in the Operations Manual.
Bhc also requires franchisees to adhere to specific operational requirements to maintain the integrity of the brand. Franchisees must have a General Manager who devotes their full time during business hours to managing the restaurant. Franchisees must sell only approved BHC Products and other specified food and beverages from designated vendors, following the procedures in the Operations Manual. They must also maintain adequate supplies and use standard signs and formats prescribed by Bhc. Online ordering must be done through Bhc's official website. If the restaurant serves beer and wine, franchisees must obtain the necessary licenses and supervise employees to ensure responsible alcohol service, including maintaining adequate security. Franchisees must also promptly pay all debts and contractors.