What is the Bhc Master Franchisee required to acknowledge regarding ownership or control by governments subject to a U.S. embargo?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Master Franchisee acknowledges that Master Franchisee is not directly or indirectly owned or controlled by the government of any country that is subject to an embargo imposed by the United States of America, nor does Master Franchisee or any Principal Equity Operator act directly or indirectly on behalf of the government of any country that is subject to an embargo imposed by the United States of America.
Master Franchisee agrees that Master Franchisee will notify Franchisor in writing immediately of the occurrence of any event that renders the foregoing representations and warranties of this section 16.12 incorrect.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must acknowledge that they are not directly or indirectly owned or controlled by the government of any country that is subject to a U.S. embargo. Additionally, the Master Franchisee (or any Principal Equity Operator) must not act directly or indirectly on behalf of any government subject to a U.S. embargo.
This requirement ensures that Bhc complies with U.S. laws and regulations regarding international trade and relations. It prevents the franchise from being used as a vehicle for governments with which the U.S. has strained relationships to conduct business or exert influence within the U.S. market.
Furthermore, the Master Franchisee must notify Bhc immediately in writing if any event occurs that would make these representations incorrect. This places an ongoing responsibility on the franchisee to monitor their ownership and control structure and to inform Bhc of any changes that could potentially violate this provision. Failure to comply with this requirement could have serious legal and financial repercussions for both the franchisee and Bhc.