What must the Master Franchisee's form Subfranchise Agreement and Other Agreements include regarding territory size for Bhc?

According to Bhc's 2025 Franchise Disclosure Document, the Master Franchisee's form Subfranchise Agreement and Other Agreements must include terms and conditions consistent with the Master Franchise Agreement and as prescribed by Bhc from time to time. This specifically includes the maximum size of the territory granted under any Subfranchise Agreement or Other Agreement.

This means that Bhc retains control over the size and scope of territories granted to subfranchisees by the Master Franchisee. A prospective Master Franchisee should understand that they cannot independently determine territory sizes; instead, they must adhere to Bhc's guidelines. This ensures consistency and prevents the potential for overlapping or conflicting territories, which could harm the brand and franchisee relationships.

For a prospective Master Franchisee, this requirement has several implications. It provides clarity and structure to the subfranchising process, reducing the risk of disputes over territory. However, it also limits the Master Franchisee's flexibility in tailoring territory sizes to local market conditions. Therefore, it is crucial for a potential Master Franchisee to fully understand Bhc's criteria for territory size and how these criteria will impact their ability to develop the market effectively. They should discuss these factors with Bhc during their due diligence process.