For Bhc, what is the requirement regarding the authorization of any individual executing the Franchise Agreement on the franchisee's behalf?

According to Bhc's 2025 Franchise Disclosure Document, if the franchisee is an entity, any individual signing the Franchise Agreement on the franchisee's behalf must be duly authorized to do so. The agreement must constitute a valid and binding obligation for both the franchisee and all of the franchisee's Principal Equity Operators. This means that Bhc requires assurance that the person signing has the legal authority to bind the franchisee to the terms of the agreement.

This requirement is a standard practice in franchising to ensure the enforceability of the Franchise Agreement. Bhc wants to avoid future legal challenges based on claims that the person who signed the agreement lacked the authority to do so. By requiring proper authorization, Bhc aims to establish a clear and legally sound contractual relationship with its franchisees.

For a prospective Bhc franchisee, this means ensuring that if your franchise entity is a corporation, LLC, or other business entity, you must verify that the person signing the Franchise Agreement on behalf of the entity has the appropriate corporate authority to do so, such as being an officer or having a power of attorney. Failure to ensure proper authorization could lead to legal complications and potential disputes with Bhc in the future.