Is Bhc making any representation about a franchisee's future financial performance?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not make any representation about a franchisee's future financial performance or the past financial performance of company-owned or franchised BHC Restaurants. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing BHC Restaurant, however, we may provide you with the actual records of that BHC Restaurant. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting the Franchise Development Department at 3435 Wilshire Blvd., Suite 460, Los Angeles, CA 90010, 323-424-3733, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — Financial Performance Representations (FDD page 49)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc does not make any representations about a franchisee's future financial performance, nor does it provide information about the past financial performance of company-owned or franchised Bhc restaurants. Furthermore, Bhc does not authorize its employees or representatives to make such representations, either orally or in writing.
However, if a prospective franchisee is purchasing an existing Bhc restaurant, Bhc may provide the actual records of that specific restaurant. The FDD stipulates that if a prospective franchisee receives any other financial performance information or projections of future income, they should report it to Bhc's management, the Federal Trade Commission, and the appropriate state regulatory agencies. This is to ensure that franchisees are not misled by unauthorized financial claims.
This policy is typical in the franchise industry, as franchisors generally avoid making income claims unless they have a reasonable basis and include the information in Item 19 of the FDD. This allows potential franchisees to make informed decisions based on documented performance data, while also protecting the franchisor from liability related to unsubstantiated claims. Prospective franchisees should be cautious of any financial projections not explicitly provided within the FDD and should conduct their own due diligence, including consulting with financial advisors, before investing in a Bhc franchise.