What specific costs can Bhc include when seeking reimbursement for collection costs from a franchisee?

According to Bhc's 2025 Franchise Disclosure Document, Bhc is entitled to reimbursement from the franchisee for all costs incurred to enforce its rights under the Franchise Agreement. These costs specifically include reasonable attorneys' fees and investigator's fees. This reimbursement is triggered when Bhc takes action to collect any amounts due and delinquent from the franchisee.

This means that if a Bhc franchisee fails to pay royalties, marketing fees, or any other amounts owed to Bhc, the franchisor can pursue legal action to recover those funds. In addition to the unpaid amounts, Bhc can also seek reimbursement for the expenses it incurs in pursuing the collection, such as the fees charged by its attorneys for their legal services and the fees paid to investigators, if any were used to gather information relevant to the collection efforts.

It is important to note that the attorneys' fees must be "reasonable," which is a subjective standard that could be subject to interpretation and potential dispute. A franchisee should seek legal counsel to understand what constitutes reasonable fees in their jurisdiction. This provision in the franchise agreement could significantly increase the financial burden on a franchisee who is already struggling to meet their financial obligations to Bhc.