What is the required action for a Bhc Master Franchisee if any litigation, arbitration, disciplinary action, criminal proceeding, or any other legal proceeding is brought against them or their affiliates?

According to Bhc's 2025 Franchise Disclosure Document, if any litigation, arbitration, disciplinary action, criminal proceeding, or any other legal proceeding is brought against a Master Franchisee, or any entity affiliated with them, or any agent, employee, owner, director or partner of the Master Franchisee, the Master Franchisee must immediately notify Bhc. This notification must include all relevant details, following the procedures outlined in the Operations Manual.

This requirement ensures that Bhc is promptly informed of any legal issues that could affect the Master Franchisee's ability to operate the franchise or that could potentially harm the Bhc brand's reputation. The level of detail required in the notification allows Bhc to assess the situation and determine the appropriate course of action, which may include providing support to the Master Franchisee or taking steps to protect its own interests.

It is important for prospective Master Franchisees to understand the notification procedures detailed in the Operations Manual to ensure compliance with this requirement. Failure to promptly and accurately report such legal proceedings could result in penalties or other adverse consequences under the Master Franchise Agreement.