What representation does the Master Franchisee make regarding obtaining written consent from Bhc before certain actions?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ENANTS**
11.1 Exclusive In-Term Dealing.
(a) Master Franchisee acknowledges it will receive valuable specialized training and access to Proprietary Information, including information regarding the operational, sales, promotional and marketing methods and techniques of the System and Franchisor's Trade Secrets. In consideration for the use and license of such valuable information, Master Franchisee agrees that it will not during the term of this Agreement operate, manage, own, assist or hold an interest in (direct or indirect as an employee,
officer, director, shareholder, manager, member, partner or otherwise), or engage in, any competing business selling goods or offering services equivalent to BHC Products or the Franchised Business, without Franchisor's express prior written consent, which consent may be withheld in Franchisor's sole and absolute discretion.
(b) It is the intention of both Master Franchisee and Franchisor that Master Franchisee maximizes the Franchised Business within the Territory, and any action of Master Franchisee that diverts business to another entity or diminishes the Franchised Business being conducted in the Territory will be a material breach of this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Master Franchisee makes several representations regarding obtaining written consent from Bhc before taking certain actions. The Master Franchisee cannot operate, manage, own, assist, or hold an interest in any competing business selling goods or offering services equivalent to Bhc Products without Bhc's express prior written consent. This consent can be withheld at Bhc's sole and absolute discretion.
Additionally, the Master Franchisee may not engage in any "Co-branding" with other businesses or allow subtenants in the Bhc Restaurant without Bhc's prior written consent. Bhc is not required to approve any Co-branding chain or arrangement except in Bhc's discretion, and only if Bhc recognizes that Co-branding chain as an approved co-brand for operation within the System.
Furthermore, the Franchisee may not modify the design or choose third party designers without Franchisor's express written consent. Franchisee may not commence leasehold improvement of the Franchised BHC Restaurant until Franchisor consents in writing to the final plans, specifications, and contractors to be used in constructing the Franchised BHC Restaurant. These stipulations ensure that the Master Franchisee adheres to Bhc's standards and protects Bhc's brand and operational integrity.