During the term of the Franchise Agreement, can a member of a Bhc franchisee's immediate family participate in a Competitive Business without Bhc's written consent?

According to Bhc's 2025 Franchise Disclosure Document, during the term of the Franchise Agreement, neither the franchisee nor any member of their immediate family can engage in or participate in a Competitive Business without first obtaining written consent from Bhc. This restriction applies to involvement as an owner, officer, partner, director, agent, employee, shareholder, or in any other capacity.

This clause is designed to protect Bhc's market position and proprietary information by preventing franchisees and their families from directly competing with the franchise during the agreement's term. It ensures that the franchisee's efforts are fully dedicated to the success of their Bhc franchise and that confidential information isn't used to benefit a competing business.

For a prospective franchisee, this means that their immediate family members are also restricted from participating in any competitive business without Bhc's approval. This could impact family members who are already involved in similar businesses or who may consider doing so in the future. Franchisees should carefully consider this restriction and discuss any potential conflicts with Bhc before signing the Franchise Agreement. It is important to understand the scope of what Bhc considers a "Competitive Business" and the process for obtaining written consent.

This type of non-compete clause is common in franchising to protect the brand and prevent conflicts of interest. However, the specific terms can vary, so it's crucial for franchisees to fully understand the restrictions and seek legal advice if needed.