What is the Prospective Franchisee warranting to Bhc regarding Prohibited Persons holding any interest in the Prospective Franchisee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
The Prohibited Persons shall not hold any interest in the Prospective Franchisee nor have any management right, other substantial control, and/or claim against the Prospective Franchisee.
In addition, if the Prohibited Persons have any right or legal relationship with the Prospective Franchisee, claim/debt, employment, delegation, or other right or legal relationship, regardless of whether real name/borrowed name or registered/non-registered, the Prospective Franchisee shall immediately notify BHC in writing.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a prospective franchisee warrants that Prohibited Persons shall not hold any interest in the Prospective Franchisee nor have any management right, other substantial control, and/or claim against the Prospective Franchisee.
Bhc defines "Prohibited Persons" as BHC USA or its Affiliates. "Affiliates" mean a party's respective present and former, direct and indirect, parents, subsidiaries, employees, officers, directors, shareholders, managers, members, agents, representatives, and spouses (for individuals), including any other person directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such person. "Control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise.
Furthermore, if any Prohibited Persons have any right or legal relationship with the Prospective Franchisee, claim/debt, employment, delegation, or other right or legal relationship, regardless of whether real name/borrowed name or registered/non-registered, the Prospective Franchisee must immediately notify Bhc in writing. This ensures transparency and prevents potential conflicts of interest or undue influence from parties associated with Bhc.