What is the Prospective Franchisee warranting to Bhc regarding compliance with various civil and criminal laws and regulations for the prevention of occupational breach of trust, embezzlement, and other crimes?

According to Bhc's 2025 Franchise Disclosure Document, a prospective franchisee must comply with all civil and criminal laws and regulations related to preventing occupational breach of trust, embezzlement, and other crimes when engaging in transactions and legal interactions with Bhc. This extends to the formation, maintenance, and termination of these transactions.

Furthermore, the prospective franchisee is prohibited from instructing, aiding, or participating in any occupational breach of trust, embezzlement, or other criminal acts involving any third party, including Prohibited Persons. If the prospective franchisee becomes aware of any proposed or detected criminal act, they are obligated to promptly inform Bhc in writing.

This requirement ensures that all franchisees adhere to ethical and legal standards in their dealings with Bhc and other parties. It also protects Bhc from potential legal and financial liabilities resulting from illegal activities conducted by franchisees or their associates. Franchisees should maintain thorough records and internal controls to ensure compliance and be prepared to report any suspicious activities to Bhc immediately.