What rights related to lease agreements must the Master Franchisee ensure that each Bhc Subfranchisee attempts to include in their lease agreements?

According to Bhc's 2025 Franchise Disclosure Document, the Master Franchisee has specific obligations regarding the lease agreements of its Subfranchisees. The Master Franchisee must ensure that each Subfranchisee uses its best efforts to include certain express provisions in any lease agreement they enter into for a Bhc Restaurant. These provisions are designed to protect the Master Franchisee's interests in the event of a breach or termination of the Subfranchise Agreement.

Specifically, the Subfranchisee must try to secure the right for the Master Franchisee to receive notice of any breach of the lease agreement. This allows the Master Franchisee to stay informed about potential issues that could affect the operation of the Bhc Restaurant. Additionally, the Subfranchisee must seek to grant the Master Franchisee the right, but not the obligation, to cure any such breach. This provides the Master Franchisee with the option to step in and resolve the issue to prevent further complications or potential loss of the restaurant location.

Finally, the Subfranchisee needs to try to include a provision that grants the Master Franchisee the right, but not the obligation, to have the lease agreement transferred, assigned, or novated to them upon a breach of the lease agreement or the expiration or termination of the Subfranchise Agreement. This is a critical provision that allows the Master Franchisee to take over the lease and continue operating the Bhc Restaurant, or assign the lease to another Subfranchisee, ensuring business continuity and preserving the value of the franchise in that location. These stipulations are designed to give the Master Franchisee a degree of control and protection over the restaurant's location, which is vital for the stability and success of the Bhc franchise network.