What is the Prospective Franchisee warranting to Bhc regarding any relationship, affiliation, or ownership interest with Prohibited Persons?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
A. The Prospective Franchisee represents, warrants and covenants to BHC USA LLC ("BHC") that all of the following matters are true and accurate as of the date of execution of this Acknowledgment and Authorization for Background Check ("Acknowledgment"):
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- No Prospective Franchisee and his/her/its Affiliates (as that term is defined below) had or has any relationship, affiliation, or ownership interest, directly or indirectly, with BHC USA or its Affiliates ("Prohibited Persons"). "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.
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The Prospective Franchisee has not made nor is making any act of providing money, goods, gifts, entertainment or other monetary or non-monetary benefits to any of the Prohibited Persons (including, but not limited to, the provision of rebates/back margins, granting of an opportunity to acquire intermediate margin, lending of money, reduction of debt, provision of collateral, provision of transaction/investment opportunities, job placement, high-price purchase/lowprice sale, etc.).
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 must acknowledge and warrant several conditions regarding their relationship with "Prohibited Persons," which are defined as BHC USA LLC, its affiliates, and their respective present and former direct and indirect parents, subsidiaries, employees, officers, directors, shareholders, managers, members, agents, representatives, and spouses. This extends to any person who controls, is controlled by, or is under common control with such persons.
Specifically, the prospective franchisee warrants that neither they nor their affiliates have or had any relationship, affiliation, or ownership interest, directly or indirectly, with these Prohibited Persons. They also warrant that they have not provided and will not provide any money, goods, gifts, entertainment, or other monetary or non-monetary benefits to any of the Prohibited Persons, including but not limited to rebates, back margins, opportunities to acquire intermediate margins, loans, debt reduction, collateral, transaction/investment opportunities, job placement, or high-price/low-price sales.
Furthermore, the prospective franchisee warrants that Prohibited Persons do not hold any interest in the prospective franchisee's business, nor do they have any management rights, substantial control, or claims against the prospective franchisee. The franchisee is obligated to immediately notify Bhc in writing if any Prohibited Persons have any right or legal relationship with them, including claims, debts, employment, delegation, or other legal relationships, regardless of whether these are under real or borrowed names, or registered or unregistered. This comprehensive warranty aims to ensure no conflicts of interest or undue influence from parties connected to Bhc.