What must a Prospective Franchisee do if they detect a proposed or detected criminal act involving Bhc?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
The Prospective Franchisee shall comply with various civil and criminal laws and regulations for the prevention of occupational breach of trust, embezzlement, and other crimes in the formation, maintenance, and termination of transactions with BHC and other legal relations.
In addition, the Prospective Franchisee shall not instruct, aid, or participate in any occupational breach of trust, embezzlement, or other criminal act of any third party, including any Prohibited Persons, and shall promptly inform BHC in writing of any proposed or detected criminal act.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Prospective Franchisee is obligated to comply with civil and criminal laws and regulations to prevent occupational breach of trust, embezzlement, and other crimes when engaging in transactions and legal relations with Bhc. This extends to refraining from instructing, aiding, or participating in any such criminal acts committed by a third party, including Prohibited Persons as defined in the document.
Specifically, if a Prospective Franchisee becomes aware of a proposed or detected criminal act, they are required to promptly inform Bhc in writing. This requirement ensures that Bhc is immediately notified of any potential illegal activities that could impact the franchise system or its reputation.
This obligation is part of a broader set of responsibilities outlined for Prospective Franchisees, emphasizing the importance of ethical and legal conduct in their dealings with Bhc. Failing to report such activities could have legal and contractual consequences for the Prospective Franchisee, potentially affecting their eligibility to be granted a franchise.