What is the meaning of 'MFA' in the context of a Bhc franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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We offer to qualified entities (each, a "Master Franchisee") the right to enter into a master franchise agreement with us ("MFA" or "Master Franchise Agreement") for the operation of a BHC master franchise business ("Master Franchise Business") within a specific geographic territory or territories (the "Development Area") using the Trademarks, System, and IP Rights (as these terms are defined below).
Under the MFA, you will be granted the right and license: (i) to grant subfranchises for the establishment and operation of BHC Restaurants, as defined below, within the Development Area ("Development Rights") to third party subfranchisees that meet our requirements ("Subfranchisees") by entering into Subfranchise Agreements (as defined below) ("Subfranchised BHC Restaurants"); and (ii) to directly own and operate through an affiliate of the Master Franchisee ("Affiliate Franchisee") ("Affiliate Franchised BHC Restaurants") within the Development Area once opened, and to support, and receive fees from, as applicable, all Master Franchised BHC Restaurants within the Development Area once opened ("Operating Rights").
"BHC Restaurant(s)" means a single retail dine-in, carry-out, drive-thru, and delivery restaurant, serving classic Korean flavor fried chicken (e.g., Korean cheese seasoning, Korean soy sauce, sweet & spicy sauce), sandwiches, wraps, Korean cuisines and other beverages, food, and related merchandise, products, and accessories, using designated concepts, designs, recipes, authorized equipment, and techniques.
"BHC Products" mean any product or service we authorize to be provided at BHC Restaurants under the System, as we may amend from time to time, with the understanding that any such products and services, including pre-packaged or ready-to-drink products and/or related merchandise or services, may only be offered to Affiliate Franchisees and Subfranchisees located within the Development Area, and not through any other distribution channels.
"Master Franchised BHC Restaurants" means Affiliate Franchised BHC Restaurants and Subfranchised BHC Restaurants opened and operated by Affiliate Franchisee or Subfranchisee respectively pursuant the Master Franchisee's Development Rights and Operating Rights.
Source: Item 1 — The Franchisor, And Any Parents, Predecessors, And Affiliates (FDD pages 7–10)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, 'MFA' refers to the Master Franchise Agreement. Bhc offers qualified entities the right to enter into a master franchise agreement with them for the operation of a Bhc master franchise business within a specific geographic territory, utilizing Bhc's trademarks, system, and IP rights.
The Master Franchise Agreement grants the franchisee the right to grant subfranchises for the establishment and operation of Bhc Restaurants within a designated Development Area to third-party subfranchisees who meet Bhc's requirements. It also allows the franchisee to directly own and operate Bhc Restaurants through an affiliate within the Development Area. The master franchisee is then responsible for supporting and receiving fees from all Master Franchised Bhc Restaurants within their Development Area.
Under the MFA, the franchisee cannot directly operate any Bhc Restaurant but can only do so through an affiliate that enters into a Franchise Agreement with Bhc. The franchisee is also responsible for preparing and seeking Bhc's approval of the form subfranchise agreement and any other form agreements they intend to use with prospective subfranchisees. These agreements must align with the terms and conditions of the MFA and Bhc's prescriptions.