What is the Prospective Franchisee warranting to Bhc regarding providing money, goods, gifts, entertainment or other monetary or non-monetary benefits to any of the Prohibited Persons?

According to Bhc's 2025 Franchise Disclosure Document, a prospective franchisee warrants that they have not and are not providing any money, goods, gifts, entertainment, or other monetary or non-monetary benefits to any of the Prohibited Persons. These benefits include, but are not limited to, rebates/back margins, granting an opportunity to acquire intermediate margin, lending of money, reduction of debt, provision of collateral, provision of transaction/investment opportunities, job placement, and high-price purchase/low-price sale.

This warranty ensures that there are no conflicts of interest or undue influence between the prospective franchisee and Bhc or its affiliates. The term "Prohibited Persons" refers to BHC USA LLC and 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.

This is a standard practice in franchising to maintain transparency and prevent any potential unethical or illegal activities. The prospective franchisee must also ensure that no Prohibited Person holds any interest in their business or has any management rights or control over it. Furthermore, if any Prohibited Person has 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.

Bhc emphasizes the importance of this warranty by stating that any false statement on the Acknowledgment form is sufficient cause to deny further consideration or to revoke and terminate any agreement signed with Bhc. Bhc also reserves the right to exercise any and all remedies available at law or in equity, including specific performance and damages, if a false statement is discovered.