Who is responsible for obtaining zoning classifications, permits, and certificates of occupancy for the Bhc restaurant?

According to Bhc's 2025 Franchise Disclosure Document, the franchisee is responsible for obtaining all zoning classifications, permits, clearances, and certificates of occupancy required by governmental authorities for their franchised restaurant. This also includes complying with all covenants, conditions, easements, and restrictions of record, all at the franchisee's expense. For Master Franchisees, the same conditions apply.

This means that a prospective Bhc franchisee must budget not only for the direct costs of these permits and certificates but also for the time and effort required to navigate local regulations and requirements. These costs can vary significantly depending on the location of the franchise, so thorough research into local zoning and permitting laws is essential during the site selection process. Bhc offers assistance in the site selection process but the final decision lies with the franchisee.

Bhc requires franchisees to use licensed general contractors, designers, vendors, and architects accepted by Bhc before performing any leasehold improvement work. While Bhc offers a sample prototype layout and floor plan, franchisees are responsible for adapting these plans to meet local regulations and the specific requirements of their chosen site. The franchisee must also pay Bhc a $2,500 Site Design Review Fee and a Site Review Fee of $2,000 to $4,000.

Ultimately, while Bhc provides support and guidance, the onus is on the franchisee to ensure full compliance with all local laws and regulations. Failure to obtain the necessary permits and certificates can lead to delays in opening the restaurant, potential fines, or even the termination of the franchise agreement.