What is the Bhc Master Franchisee's responsibility to ensure that Subfranchisees obtain and maintain necessary licenses and permits for selling beer and wine?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) 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.
Master Franchisee must ensure that the Subfranchisees always supervise its employees to make sure Subfranchisee customers are served and consume alcoholic beverages responsibly.
Master Franchisee must also ensure that the Sublicensees always employ and maintain enough security personnel on and near the BHC Restaurant premises to provide adequate care and custody of Master Franchisee's customers.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a Bhc Restaurant is configured for on-premises consumption of beer and wine, the Master Franchisee must ensure that Subfranchisees obtain and maintain all necessary licenses and permits from the relevant state or local agency. These licenses and permits are required for the Subfranchisees to legally offer and sell beer and wine at their Bhc Restaurant, as authorized in the Operations Manual or otherwise in writing by Bhc. The Master Franchisee is also responsible for determining the exact cost of these liquor licenses.
Furthermore, the Master Franchisee must ensure that Subfranchisees supervise their employees to serve and allow customers to consume alcoholic beverages responsibly. The Master Franchisee is also responsible for ensuring that Subfranchisees employ and maintain enough security personnel on or near the restaurant premises to provide adequate care and custody of customers.
In addition to ensuring compliance with alcohol-related regulations, the Master Franchisee must also ensure that Subfranchisees operate the Bhc Restaurant and the franchised business in compliance with all applicable laws, rules, and regulations of applicable government authorities. This includes complying with all applicable wage, hour, and other laws and regulations of federal, state, or local governments, preparing and filing all necessary tax returns, and paying promptly all taxes imposed upon the Subfranchisee or their business or property. The Master Franchisee also represents and warrants that they 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.