What right does Bhc Franchisor have regarding inspections of a Franchisee's BHC Restaurant?

According to Bhc's 2025 Franchise Disclosure Document, Bhc has the right to conduct regular inspections of a franchisee's BHC Restaurant, as well as any other site where the franchisee conducts business. Franchisees are required to fully cooperate with Bhc's representatives during these inspections, providing access to the premises during normal business hours and offering any assistance reasonably requested.

Following an inspection, if deficiencies are noted, the franchisee must immediately take steps to correct them. Bhc's representatives may then re-inspect the location to ensure that the issues have been resolved. If the deficiencies persist after the initial re-inspection, Bhc may conduct additional re-inspections until the problems are corrected or until Bhc deems the franchisee to be in material breach of the agreement.

Furthermore, 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's personnel. Before the BHC Restaurant opens, Bhc will visit the site for three on-site visits and complete a final "walk through" inspection of the BHC Restaurant and issue a written consent to open. The franchisee is responsible for an inspection fee of $600, all accommodation, transportation, meals, daily allowances, and other costs and expenses for Bhc's personnel in connection with such visits on site but up to three times per Franchised BHC Restaurant only. Any deficiencies noted by Bhc as a result of this inspection must be corrected by Franchisee within 30 days or this Agreement may be terminated without any liability to Bhc.

Bhc also requires access to the franchisee's BHC Restaurant while leasehold improvement work is in progress, and Bhc may make video records of the work. Bhc may also require reasonable alterations or modifications to the leasehold improvements that it deems necessary. Franchisee's failure to promptly commence and diligently complete the design, leasehold improvement, inventorying, equipping, and opening of the Franchised BHC Restaurant will be a material breach of this Agreement.