As a Bhc Master Franchisee, what must I do regarding the operating requirements specified in each Franchise Agreement?

According to Bhc's 2025 Franchise Disclosure Document, as a Master Franchisee, you are obligated to comply with all terms and conditions of each Franchise Agreement, including the operating requirements detailed within. This means ensuring that all subfranchisees also adhere to these operating requirements. These requirements cover various aspects of the business, including the sale of authorized products, adherence to operational procedures, and maintenance of adequate supplies.

Bhc requires that a General Manager, or the Master Franchisee themselves, actively manage the Franchised Business during normal business hours. This individual must dedicate their entire time to the business and ensure timely and professional service to customers. Master Franchisees must ensure that only approved BHC products and beverages are sold, sourced from designated vendors and suppliers. The operation of the franchised business must strictly adhere to the procedures outlined in the Operations Manual, with online ordering exclusively through Bhc's official website.

To maintain the integrity and goodwill of the Bhc system, Master Franchisees must ensure compliance with the methodologies prescribed for providing BHC Products to customers. This includes using standard signs and formats and complying with established standards, operating procedures, and rules regarding ingredients, brand names, preparation, and presentation. Master Franchisees are also responsible for purchasing and ensuring subfranchisees purchase equipment and inventory to meet consumer demand and ancillary products as specified by Bhc.

Master Franchisees must purchase all products, including those bearing Bhc's marks, exclusively from Bhc or its designated suppliers. Before opening a BHC Restaurant, Master Franchisees and subfranchisees must purchase an opening inventory of merchandise and supplies, including proprietary products, from Bhc and its affiliates. Bhc will provide a list of approved manufacturers, suppliers, and distributors, as well as approved inventory products, fixtures, furniture, equipment, signs, stationery, supplies, and other necessary items.