Under what conditions can the Bhc franchisor cure a breach on behalf of the franchisee?

According to Bhc's 2025 Franchise Disclosure Document, Bhc may elect to cure a franchisee's breach under specific conditions. If the franchisee fails to perform any obligation or violates any term or condition of the Franchise Agreement, or any related agreement involving third parties, Bhc has the option to cure the breach. This can be done immediately or at any time thereafter, without notifying the franchisee and without waiving any claim for the breach.

If Bhc chooses to cure a breach, it will do so for the franchisee's account and on the franchisee's behalf. The franchisee is then responsible for paying Bhc all costs and expenses, including attorney's fees, that Bhc incurs as a result of curing the breach. These costs are due and payable by the franchisee to Bhc upon demand.

This clause in the franchise agreement allows Bhc to step in and rectify a franchisee's default to maintain brand standards and operational consistency. However, the franchisee ultimately bears the financial burden of the cure, which could include significant expenses like attorney's fees, in addition to the original obligation that was breached. Prospective franchisees should be aware of this provision and understand the potential financial implications if they fail to meet their obligations under the Franchise Agreement.