What staffing requirements must Bhc Master Franchise Businesses maintain to comply with standards?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
You will maintain at all times a staff of trained employees sufficient to operate the Master Franchise Business in compliance with our required standards and specifications, and must ensure that all of your Affiliate Franchisee and your Subfranchisees maintain at all times a staff of trained employees sufficient to operate their BHC Restaurants in compliance with our required standards.
Each Principal Equity Operator (and their spouse if applicable) signs a Guarantee of MFA (attached as Exhibit 3 of the MFA) requiring them to ensure that all obligations of the franchisee under the MFA (including provisions related to payments to franchisor, confidentiality, and non-competition) are fulfilled.
The day-to-day operations of your Master Franchise Business and Master Franchise BHC Restaurant must be always managed by you or a full-time "General Manager" who has satisfactorily completed our training program. Your General Manager's responsibilities will be to (i) establish, implement and monitor food safety and quality policies, (ii) establish measurable food safety and quality objectives, (iii) ensure compliance with quality and food safety policies and procedures at all Master Franchise BHC Restaurants with the Development Area, and (iv) develop and implement business continuity policies. Your General Manager need not have an equity interest in the business but must agree in writing not to compete against us and to preserve confidential information to which they have access and not to compete with you, us, and other franchisees. We may regulate the form of agreement that you use and be a third-party beneficiary of that agreement with independent enforcement rights.
You are required to inform us immediately of a change of the General Manager of your business operation.
You or your General Manager must attend any annual meeting, convention or conference of franchisees and all meetings related to new products or product preparation procedures, new operational procedures or programs, training, management, sales or sales promotion or similar topics that we offer, at your own expense. As of the date of this Disclosure Document, we do not anticipate requiring franchisees to attend meetings for more than ten days during any calendar year. You are responsible for all related travel and living expenses associated with attending any additional meetings, conventions, or conferences.
Source: Item 15 — Obligation to Participate in The Actual Operation of The Franchise Business (FDD pages 42–43)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Master Franchise Businesses must maintain a staff of trained employees sufficient to operate in compliance with Bhc's standards and specifications. This requirement extends to ensuring that all Affiliate Franchisees and Subfranchisees also maintain adequately staffed BHC Restaurants.
In addition to general staffing levels, Bhc requires that a General Manager be employed to oversee the Master Franchise Business. This General Manager must devote their entire time during normal business hours to the management, operation, and development of the Franchised Business. The General Manager is responsible for ensuring that the Master Franchisee fulfills its obligations to customers in a timely and professional manner and cannot engage in any other conflicting business activities during business hours. At least one Principal Equity Operator, along with or through the General Manager, must also participate personally in the direct operation of the Master Franchise Business.
The General Manager's responsibilities include establishing and monitoring food safety and quality policies, setting measurable objectives, ensuring compliance with these policies at all Master Franchise BHC Restaurants within the Development Area, and developing business continuity policies. Bhc also requires immediate notification of any change in the General Manager position. Furthermore, the General Manager and the franchisee are expected to attend annual meetings, conventions, or conferences related to new products, operational procedures, training, management, or sales, incurring their own expenses for travel and accommodation.