Does the Bhc Multi-Unit Master Franchise Agreement require a guarantee, and if so, which exhibit contains the Guarantee of Franchise Agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
List of Exhibits to Multi-Unit Master Franchise Agreement:
Exhibit 1 – Development Schedule
Exhibit 2 – Development Area - Map
Exhibit 3 – Guarantee of Multi-Unit Master Franchise Agreement
Exhibit 4 – Confidentiality and Non-Competition Agreement
Exhibit 5 –Addendum to Lease
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Multi-Unit Master Franchise Agreement does require a guarantee. Specifically, Exhibit 3 to the Multi-Unit Master Franchise Agreement contains the Guarantee of Multi-Unit Master Franchise Agreement.
This means that a prospective Bhc multi-unit master franchisee will likely need to provide a personal guarantee or have a related entity guarantee their obligations under the franchise agreement. This is a common practice in franchising, especially for multi-unit agreements, as it provides the franchisor with additional security that the franchisee will fulfill their financial and operational commitments.
Franchisees should carefully review the guarantee document (Exhibit 3) with their legal and financial advisors to fully understand the scope of the guarantee and their potential liabilities. The guarantee may extend to all obligations under the Multi-Unit Master Franchise Agreement, including development schedules, payment of fees, and compliance with operational standards. The franchisee should also understand the conditions under which the guarantee can be triggered and the potential consequences of default.