What must a Bhc Master Franchisee entity warrant regarding consents, approvals, licenses, and permits to carry out business activities?

According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must secure and maintain all necessary permits, certificates, and licenses to operate a Bhc restaurant and conduct the franchised business within their designated city, county, and state. This includes ensuring compliance with all applicable laws, rules, and regulations from government authorities, as well as wage, hour, and other labor laws at the federal, state, and local levels.

This requirement places a significant responsibility on the Master Franchisee to navigate the regulatory landscape and ensure ongoing compliance. Failure to obtain or maintain the required permits and licenses could result in fines, penalties, or even the closure of the Bhc restaurant. The Master Franchisee is also responsible for promptly paying all taxes imposed on their business or property.

Furthermore, the Master Franchisee must ensure that their subfranchisees also adhere to these compliance standards. This adds another layer of oversight and responsibility, as the Master Franchisee is accountable for the actions of their subfranchisees in maintaining legal and regulatory compliance. This aspect is common in master franchise agreements, where the master franchisee acts as an intermediary between the franchisor and individual unit franchisees.

In addition to general compliance, the Master Franchisee is responsible for acquiring specific permits and licenses related to structural reinforcement, grease interceptors, and parking. They must also secure all zoning classifications, certificates of occupancy, and center clearances required by governmental authorities, and comply with all relevant covenants, conditions, easements, and restrictions. These obligations highlight the importance of thorough due diligence and professional guidance in navigating the complexities of opening and operating a Bhc restaurant.