factual

Is a Bhc Master Franchisee required to obtain and maintain permits, certificates, or licenses to operate the Bhc Restaurant?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

Master Franchisee shall be solely responsible for acquiring all of the necessary permits and licenses, including but not limited to permits related to structural reinforcement, grease interceptors, and parking.

Master Franchisee represents and warrants it will obtain and always maintain the permits, certificates, or licenses necessary to operate the BHC Restaurant and conduct the Franchised Business in the city, county, and state where the BHC Restaurant is located.

If the BHC Restaurant is configured for the on-premises consumption of beer and wine, Master Franchisee must, and ensure the Subfranchisees do, obtain and maintain the necessary licenses and permits from state or local agency regulating the on- premises sale and consumption of beer and wine to permit Subfranchisees to offer and sell at the BHC Restaurant beer and wine as authorized in the Operations Manual (or otherwise by Franchisor in writing).

The costs of these licenses and permits vary, but it is Master Franchisee's responsibility to determine exactly what this liquor license will cost.

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee is indeed responsible for obtaining and maintaining all necessary permits, certificates, and licenses required to operate a Bhc restaurant. This encompasses ensuring compliance with all applicable laws, rules, and regulations set forth by government authorities at the federal, state, and local levels. This obligation extends to ensuring that any Subfranchisees also adhere to these requirements.

Specifically, the Master Franchisee is responsible for acquiring permits related to structural reinforcement, grease interceptors, and parking, among others. Furthermore, if the Bhc restaurant intends to serve beer and wine, the Master Franchisee must obtain and maintain the necessary licenses and permits from the relevant state or local agencies. The costs associated with these licenses and permits can vary, and it is the Master Franchisee's responsibility to determine the exact expenses involved.

This requirement highlights the importance of due diligence for prospective Master Franchisees. They must thoroughly research and understand the specific licensing and permitting requirements in their chosen territory. Additionally, they should factor in the potential costs of obtaining and maintaining these licenses when assessing the overall investment required to establish and operate a Bhc franchise. Failure to comply with these legal requirements could result in fines, penalties, or even the closure of the restaurant.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.