Is the Master Franchisee responsible for any penalties associated with the transfer of funds for Royalty payments to Bhc?

According to Bhc's 2025 Franchise Disclosure Document, the Master Franchisee is responsible for any penalties, fines, or similar expenses associated with the transfer of funds for Royalty payments. Bhc has the right to require the Master Franchisee to sign electronic transfer of funds authorizations, allowing Bhc to directly transfer funds from the Master Franchisee's bank account to Bhc's account for amounts due.

This means that if the Master Franchisee incurs penalties or fines due to insufficient funds or other issues related to the electronic transfer of royalty payments, they are responsible for covering those costs. The Master Franchisee must maintain a sufficient balance in their account to cover the amounts owed to Bhc when they are due.

This requirement ensures that Bhc receives royalty payments in a timely manner and that the Master Franchisee is accountable for managing their finances to avoid penalties. It is important for prospective Master Franchisees to understand this financial obligation and ensure they have adequate funds available to cover royalty payments and any associated transfer fees or penalties.