Is Bhc obligated to franchise a Bhc Restaurant to a Prospective Franchisee simply because they executed the Acknowledgment?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
Prospective Franchisee recognizes that BHC, is not in any way obligated to franchise a BHC Restaurant to Prospective Franchisee because of Prospective Franchisee's execution of this Acknowledgment.
Prospective Franchisee acknowledges that any false statement, in whole or in part, on this Acknowledgment shall be considered sufficient cause to deny any further consideration or cause revocation and termination of any agreement signed at any time with BHC, and to the extent permissible by such agreement or law, BHC shall have the right to exercise any and all remedies available to it at law or in equity, including specific performance and damages (including liquidated).
Prospective Franchisee understands that any inquiry regarding Prospective Franchisee's character, general reputation, personal characteristics, financial background and general fitness for being a BHC Franchisee may be made as a result of this application.
In addition, by signing below Prospective Franchisee releases any and all former and/or present employers, and any other personal or business references, from any liability whatsoever in connection with BHC's attempt to investigate Prospective Franchisee's background and determine Prospective Franchisee's fitness to become a BHC franchisee.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc is not obligated to grant a franchise to a prospective franchisee simply because the prospective franchisee has signed the Acknowledgment. The document explicitly states that the prospective franchisee recognizes that Bhc is not in any way obligated to franchise a Bhc Restaurant to them due to the execution of the Acknowledgment. This clarifies that the Acknowledgment is not a binding agreement for Bhc to award a franchise.
Furthermore, the FDD states that any false statement made by the prospective franchisee on the Acknowledgment can be considered sufficient cause for Bhc to deny further consideration of the franchise application. It can also cause revocation and termination of any agreement signed with Bhc. Bhc retains the right to exercise any and all remedies available to it at law or in equity, including specific performance and damages (including liquidated), to the extent permissible by such agreement or law.
This provision protects Bhc from being forced to franchise to someone who might not meet their standards or who has provided false information. It also allows Bhc to maintain control over who becomes a franchisee and ensures that only qualified individuals are granted the opportunity to operate a Bhc Restaurant. Prospective franchisees should understand that signing the Acknowledgment is merely a step in the application process and does not guarantee the grant of a franchise.