factual

Does Bhc require franchisees to sign a confidentiality and non-competition agreement, and if so, where is this agreement located in the exhibits?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

16.3 Franchisee's Relationship to Franchisor as Franchisee 48 -
16.4 No Third-Party Beneficiaries. 49 -
16.5 Survival of Covenants. 49 -
16.6 Successors and Assigns 49 -
16.7 Joint and Several Liabilities. 49 -
16.8 Titles for Convenience Only. 49 -
16.9 Gender. 49 -
16.10 Severability; Partial Invalidity. 49 -
16.11 Counterparts 50 -
16.12 Compliance with U.S. Anti-Terrorism and Other U.S. Federal Laws 50 -
16.13 Governing Law. 51 -
16.14 Entire Agreement 51 -
17. EFFECTIV

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, franchisees are required to sign a Confidentiality and Non-Competition Agreement. This agreement is listed as Exhibit 4 to the Franchise Agreement. This means that a separate document outlining the specific terms of confidentiality and non-competition is included as part of the overall franchise agreement.

Bhc emphasizes the importance of protecting its proprietary information and market presence. The agreement likely contains clauses that restrict franchisees from disclosing confidential information about Bhc's operations, trade secrets, and business strategies. It also likely restricts franchisees from engaging in competitive activities during the term of the franchise agreement and for a certain period after the agreement expires or is terminated.

These types of agreements are standard practice in franchising to protect the franchisor's brand, system, and competitive advantage. Prospective franchisees should carefully review Exhibit 4 and understand the scope and duration of the confidentiality and non-competition obligations. It is advisable to seek legal counsel to fully understand the implications of these restrictions before signing the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.