What is the required action if a Bhc franchisee is notified of deficiencies during an inspection?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon notice from Franchisor or Franchisor's representatives, Franchisee must immediately begin such steps as may be necessary to correct any deficiencies noted during any such inspection.
Franchisor's representatives may re-inspect Franchisee's Franchised BHC Restaurant (or other facility, if applicable) to ensure noted deficiencies have been corrected.
If the deficiencies have not been corrected by the time of the initial re-inspection, Franchisor's representatives may make additional re-inspections thereafter until noted deficiencies have been corrected or deem the Franchisee to be in material breach.
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.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if notified of deficiencies during an inspection, a franchisee must immediately begin taking steps to correct those deficiencies. Bhc representatives may conduct inspections of the franchised restaurant during normal business hours to ensure compliance with the franchise agreement and operational standards. These inspections can be announced or unannounced.
Following the initial inspection, Bhc representatives may conduct re-inspections to confirm that the noted deficiencies have been corrected. If the deficiencies are not corrected by the time of the initial re-inspection, Bhc representatives may continue to conduct additional re-inspections until the issues are resolved or until Bhc deems the franchisee to be in material breach of the agreement.
The franchisee is responsible for covering all costs associated with these re-inspections, including accommodation, transportation, meals, daily allowances, and other expenses incurred by Bhc personnel. This financial responsibility underscores the importance of addressing and correcting any identified deficiencies promptly to avoid accumulating additional costs and potential breach of contract.