Is Bhc obligated to grant a franchise to a prospective franchisee simply because they signed the Acknowledgment?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, signing the Acknowledgment does not obligate Bhc to grant a franchise to a prospective franchisee. The document explicitly states that Bhc is not in any way obligated to franchise a Bhc Restaurant simply because the prospective franchisee has signed the Acknowledgment.
This acknowledgment serves to protect Bhc, ensuring that prospective franchisees understand that the application process does not guarantee approval. Bhc retains the right to deny a franchise for various reasons, and the Acknowledgment clarifies that the prospective franchisee's execution of the document does not create any obligation on Bhc's part.
Furthermore, any false statements made by the prospective franchisee on the Acknowledgment can be sufficient cause for Bhc to deny further consideration or to revoke any existing agreements. Bhc also reserves the right to pursue legal remedies, including specific performance and damages, if false statements are discovered. This underscores the importance of honesty and accuracy in the application process for potential Bhc franchisees.