Who is responsible for acquiring all necessary permits and licenses for a Bhc restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ns, specifications, and contractors to be used in constructing the Franchised BHC Restaurant. Franchisor will consult with Franchisee, to the extent Franchisor deems necessary, on the leasehold improvement and equipping of the Franchised BHC Restaurant (and Franchisor may require the Franchised BHC Restaurant to have a certain color scheme and decorative trade dress), but it is and will remain Franchisee's sole responsibility to diligently construct, equip and otherwise make ready, and then open the Franchised BHC Restaurant. Franchisee is responsible, at Franchisee's expense, for obtaining all zoning classifications, permits, clearances, certificates of occupancy and center clearances which may be required by governmental authorities and to comply with all covenants, conditions, easements, and restrictions of record.
- (e) Franchisee must use licensed general contractors, designers, vendors, and architects accepted by Franchisor before performing leasehold improvement work at Franchisee's Franchised BHC Restaurant. Franchisor expressly disclaims any representation or warranty of the quality of any goods or services provided by architects, contractors, or any other persons or entities which Franchisor may refer to Franchisee, including any warranty as to merchantability or fitness for any particular purpose. Franchisor is not responsible for delays in the leasehold improvement, equipping or decoration of the Franchised BHC Restaurant or for any loss resulting from the Franchised BHC Restaurant design or leasehold
improvement since Franchisor has no control over the landlord or developer and numerous leasehold improvement-related problems which could occur, consequently delaying the opening of Franchisee's Franchised BHC Restaurant.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisee or master franchisee is responsible for acquiring all necessary permits and licenses for their Bhc restaurant. Specifically, the franchisee is responsible for obtaining all zoning classifications, permits, clearances, certificates of occupancy, and center clearances that may be required by governmental authorities. They must also comply with all covenants, conditions, easements, and restrictions of record. Similarly, the master franchisee is solely responsible for acquiring all necessary permits and licenses, including those related to structural reinforcement, grease interceptors, and parking.
This means that a prospective Bhc franchisee or master franchisee will bear the responsibility of navigating the local regulatory landscape to ensure their restaurant is compliant with all applicable laws and regulations. This includes, but is not limited to, permits related to the physical structure of the building, environmental concerns like grease disposal, and operational requirements such as parking. The franchisee or master franchisee will also be responsible for the costs associated with obtaining these permits and licenses.
Furthermore, the franchisee or master franchisee must obtain and maintain the permits, certificates, or licenses necessary to operate the franchised Bhc restaurant and conduct the franchised business in the city, county, and state where the franchised Bhc restaurant is located. If the restaurant is configured for on-premises consumption of beer and wine, the franchisee or master franchisee must obtain and maintain the necessary licenses and permits from the state or local agency regulating the on-premises sale and consumption of beer and wine. The costs of these licenses and permits vary, and it is the franchisee's or master franchisee's responsibility to determine the exact cost of the liquor license.
It is important to note that the franchisee or master franchisee must use licensed general contractors, designers, vendors, and architects accepted by Bhc before performing leasehold improvement work at the franchised Bhc restaurant. Bhc also retains complete and uncontested control over the design of the franchised Bhc restaurant, and the franchisee or master franchisee may not modify the design or choose third-party designers without Bhc's express written consent. This highlights the importance of working closely with Bhc and approved professionals to ensure compliance with all requirements and regulations.