What rights does Bhc retain if a prospective franchisee makes a false statement in the Acknowledgment?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Prospective Franchisee recognizes that BHC, is not in any way obligated to franchise a BHC Restaurant to Prospective Franchisee because of Prospective Franchisee's execution of this Acknowledgment.
Prospective Franchisee acknowledges that any false statement, in whole or in part, on this Acknowledgment shall be considered sufficient cause to deny any further consideration or cause revocation and termination of any agreement signed at any time with BHC, and to the extent permissible by such agreement or law, BHC shall have the right to exercise any and all remedies available to it at law or in equity, including specific performance and damages (including liquidated).
Prospective Franchisee understands that any inquiry regarding Prospective Franchisee's character, general reputation, personal characteristics, financial background and general fitness for being a BHC Franchisee may be made as a result of this application.
In addition, by signing below Prospective Franchisee releases any and all former and/or present employers, and any other personal or business references, from any liability whatsoever in connection with BHC's attempt to investigate Prospective Franchisee's background and determine Prospective Franchisee's fitness to become a BHC franchisee.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a prospective franchisee provides any false statement in the Acknowledgment, Bhc can deny further consideration of the franchise application. Bhc also has the right to revoke and terminate any agreement signed with the prospective franchisee. These rights can be exercised at any time.
Additionally, Bhc retains the right to exercise any and all remedies available to it at law or in equity. This includes seeking specific performance, which would compel the franchisee to fulfill their obligations, and damages, including liquidated damages, which are a predetermined amount agreed upon to compensate for losses.
This clause underscores the importance of honesty and accuracy in the application process. Prospective franchisees should carefully review the Acknowledgment and ensure all information provided is truthful. Any misrepresentation, whether intentional or unintentional, could have significant legal and financial repercussions, including the loss of the franchise and potential liability for damages.