What is the relationship between the Franchise Agreement and the MFA for a Bhc franchise?

According to Bhc's 2025 Franchise Disclosure Document, the Franchise Agreement is related to the Master Franchise Agreement (MFA) in that it governs the operation of the first Affiliate Franchised Bhc Restaurant that a Master Franchisee is required to develop within their designated Development Area. The FDD specifies that when establishing the initial investment for an Affiliate Franchisee, it is assumed that the franchisee will enter into a Franchise Agreement with Bhc for the first Master Franchised Bhc Restaurant. This agreement will align with the current form of the Franchise Agreement as described in the MFA.

This means that the terms and conditions outlined in the Franchise Agreement will dictate how the first restaurant operated by the Affiliate Franchisee should be run. The MFA sets the stage for the broader relationship between Bhc and the Master Franchisee, while the Franchise Agreement provides the specific operational framework for the initial restaurant. This structure ensures that the first restaurant adheres to Bhc's standards and practices, setting a precedent for future locations within the Development Area.

Prospective Master Franchisees should carefully review both the MFA and the standard Franchise Agreement to understand their obligations and the operational requirements for their first restaurant. Understanding the interplay between these two agreements is crucial for successfully launching and managing a Bhc franchise.