What are 'Master Franchised Bhc Restaurants'?

According to Bhc's 2025 Franchise Disclosure Document, 'Master Franchised Bhc Restaurants' encompass both 'Affiliate Franchised Bhc Restaurants' and 'Subfranchised Bhc Restaurants.' These restaurants are opened and operated either by an Affiliate Franchisee or a Subfranchisee, respectively. This operation is conducted in accordance with the Master Franchisee's Development Rights and Operating Rights, which are granted under the Master Franchise Agreement (MFA).

In simpler terms, a Master Franchisee has the right to develop a specific area by opening Bhc restaurants either directly through an affiliated company (Affiliate Franchised Bhc Restaurants) or by granting subfranchises to third parties (Subfranchised Bhc Restaurants). The Master Franchisee is then responsible for supporting these restaurants and collecting fees from them. The term 'Master Franchised Bhc Restaurants' is an umbrella term that includes all Bhc locations operating within the Master Franchisee's designated territory, regardless of whether they are directly owned by the affiliate or operated by a subfranchisee.

For a prospective Master Franchisee, this means they have two avenues for expanding the Bhc brand within their Development Area: direct operation via an affiliate and subfranchising to third parties. The Master Franchisee must first establish at least one Affiliate Franchised Bhc Restaurant before granting subfranchises. This structure allows for a combination of direct control and distributed expansion, with the Master Franchisee overseeing the overall development and operation of all Bhc restaurants in their territory. The Master Franchisee is responsible for ensuring that all potential subfranchisees and Bhc Restaurants meet Bhc's minimum requirements.