Under what circumstances will the Bhc franchise agreement be amended regarding termination rights and notice periods?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) If any valid, applicable law or regulation of a competent governmental authority having jurisdiction over this Agreement or the parties hereto limits Franchisor's rights under section 11.2(a) above, then the section will be deemed amended (or deleted) to conform to the requirements of such laws and regulations, but in such event (unless deleted) the provisions of the Agreement thus affected will be amended only to the extent necessary to bring it within the requirements of the law or regulation.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchise agreement can be amended under specific conditions related to non-competition covenants. If any law or regulation limits Bhc's rights regarding the non-competition covenant, the agreement will be amended to conform to those legal requirements. This ensures that the non-competition terms remain enforceable and compliant with applicable laws. The amendment will only occur to the extent necessary to align with the legal or regulatory requirements.
Specifically, the non-competition covenant restricts the franchisee from operating or engaging in any competing business selling similar goods or services within a 25-mile radius of the franchisee's territory or any other authorized retail location selling Bhc products for a period of two years after the termination, cancellation, or expiration of the agreement. This restriction applies to both the franchisee and any principal equity operator involved in the business.
If a law or regulation impacts Bhc's ability to enforce this non-competition covenant, the agreement will be adjusted to comply with the legal requirements. This could mean modifying the scope, duration, or geographical limitations of the covenant to ensure it remains enforceable under the applicable laws. This amendment process ensures that the franchise agreement remains legally sound and protects Bhc's interests while adhering to legal and regulatory standards.