How quickly must a Bhc Master Franchisee notify the Franchisor of any legal proceedings pertaining to the Bhc Restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Master Franchisee incurs in operating the BHC Restaurant and the Master Franchise Business. Contractors, subcontractors, vendors, and suppliers providing services to Master Franchisee must be paid in accordance with the terms of their agreements with Master Franchisee.
(g) Master Franchisee must notify Franchisor in writing within 10 business days after Master Franchisee receives actual notice of the commencement of any investigation, action, suit, or other proceeding, or the issuance of any order, writ, injunction, award, or other decree of any court, agency, or other governmental authority that pertains to the BHC Restaurant or the Franchised Business, or that may adversely affect Master Franchisee's operations at the BHC Restaurant or Master Franchisee's ability to meet its obligations under this Agreement.
(h) If anything occurs at the BHC Restaurant or in the Development Area that causes or may cause harm or injury to retail customers or Master Franchisee's employees, Subfranchisees, or that may damage the System, Marks, or image or reputation of the Franchised Business or Franchisor or Franchisor's affiliates, Master Franchisee must immediately inform Franchisor's designated contact person by telephone, e-mail, text, or other electronic messaging medium authorized by Franchisor for this purpose. Master Franchisee must cooperate fully with Franchisor in any response to an incident described in this section 8.1(h).
(i) If there is any bona fide dispute as to any liability for taxes assessed or other indebtedness, Master Franchisee may contest the validity of the amount of the tax or indebtedness in accordance with procedures of the taxing authority or applicable law.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must notify Bhc in writing within 10 business days after receiving actual notice of any investigation, action, suit, or other proceeding. This also applies to the issuance of any order, writ, injunction, award, or other decree from a court, agency, or governmental authority. The notification requirement applies if the legal proceeding pertains to the Bhc Restaurant or the Franchised Business, or if it may adversely affect the Master Franchisee's operations at the Bhc Restaurant or their ability to meet obligations under the Master Franchise Agreement.
In addition to the 10-day notification for legal proceedings, the Master Franchisee must immediately inform Bhc if anything occurs at the Bhc Restaurant or in the Development Area that causes or may cause harm or injury to retail customers, employees, or Subfranchisees. This immediate notification also applies to events that may damage the System, Marks, or the image or reputation of the Franchised Business, Bhc, or Bhc's affiliates. The immediate notification can be made by telephone, e-mail, text, or other electronic messaging medium authorized by Bhc.
Furthermore, Bhc requires Master Franchisees to immediately notify them of any litigation, arbitration, disciplinary action, criminal proceeding, or any other legal proceeding or action brought against or involving the Master Franchisee, any entity affiliated with the Master Franchisee, or any agent, employee, owner, director, or partner of the Master Franchisee. This notification must include all relevant details, according to the procedures set forth in the Operations Manual. This broad requirement ensures Bhc is aware of any legal issues that could impact the franchise operation or the reputation of the Bhc brand.