Regarding compliance with laws, what permits, certificates, or licenses must a Bhc Master Franchisee obtain and maintain to operate a Bhc Restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ciencies have been corrected or deem the Master Franchisee to be in material breach. Master Franchisee shall be responsible for all accommodation, transportation, meals, daily allowances, and other costs and expenses for the Franchisor's personnel in connection with such re-inspections.
8.11 Compliance with Laws.
- (a) Master Franchisee must, and ensure Subfranchisees, always (i) operate the BHC Restaurant and the Franchised Business in compliance with all applicable laws, rules, and regulations of applicable government authorities, (ii) comply with all applicable wage, hour and other laws and regulations of federal, state, or local governments, (iii) prepare and file all necessary tax returns, and (iv) pay promptly all taxes imposed upon Master Franchisee or upon Master Franchisee's business or property. Master Franchisee represents and warrants it will obtain and always maintain the permits, certificates, or licenses necessary to operate the BHC Restaurant and conduct the Franchised Business in the city, county, and state where the BHC Restaurant is located.
- (b) Master Franchisee must immediately notify Franchisor of any litigation, arbitration, disciplinary action, criminal proceeding, or any other legal proceeding or action brought against or involving Master Franchisee, or any entity affiliated with Master Franchisee, or any agent, employee, owner, director or partner of Master Franchisee, which notification must include all relevant details in respect thereof, according to the procedures set forth in the Operations Manual.
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 obtain and maintain all necessary permits, certificates, and licenses to operate a Bhc Restaurant and conduct the franchised business in the city, county, and state where the restaurant is located. This includes compliance with all applicable laws, rules, and regulations from government authorities, as well as wage, hour, and other labor laws. The Master Franchisee is also responsible for preparing and filing all necessary tax returns and paying all taxes imposed on their business or property.
In addition to general business licenses, if the Bhc Restaurant is configured for on-premises consumption of beer and wine, the Master Franchisee must obtain and maintain the necessary licenses and permits from the state or local agency regulating the sale and consumption of alcohol. The Master Franchisee is responsible for determining the costs of these licenses and ensuring that employees supervise customers' responsible consumption of alcoholic beverages. They must also employ and maintain adequate security personnel on and near the restaurant premises.
The Master Franchisee is also responsible for acquiring all necessary permits and licenses related to structural reinforcement, grease interceptors, and parking. They must employ architects, designers, and engineers acceptable to Bhc to complete or modify the sample plans and specifications for the restaurant and review all licensing matters. It is the Master Franchisee's responsibility to obtain all zoning classifications, permits, clearances, certificates of occupancy, and center clearances required by governmental authorities and comply with all applicable covenants, conditions, easements, and restrictions.