Under what condition will the post-termination non-competition covenants for a Bhc Master Franchisee be amended or deleted?

According to Bhc's 2025 Franchise Disclosure Document, the post-termination non-competition covenants for a Master Franchisee may be amended or deleted under specific legal circumstances. If any valid law or regulation from a competent governmental authority limits Bhc's rights under section 11.2(a) of the Master Franchise Agreement, then the non-competition section will be amended or deleted to comply with those legal requirements. However, if the section is amended rather than deleted, the changes will only be made to the extent necessary to meet the requirements of the applicable law or regulation.

This provision ensures that the non-competition covenants are enforceable and compliant with local laws. Non-competition agreements are common in franchising to protect the brand and trade secrets. However, the enforceability of these covenants can vary by jurisdiction. Some states may have stricter rules regarding the scope and duration of non-competes.

For a prospective Bhc Master Franchisee, this means the specific terms of the post-termination non-competition agreement could change depending on the laws of the territory where they operate. It is important to understand the local laws regarding non-competition agreements and how they might affect the enforceability of the covenants in the Master Franchise Agreement. Bhc aims to ensure the agreement is legally sound and enforceable within the specific jurisdiction, while still protecting its interests.