Under what two conditions can Bhc proceed to terminate the agreement without a settlement meeting or mediation?

According to Bhc's 2025 Franchise Disclosure Document, Bhc may proceed to terminate the franchise agreement without a settlement meeting or mediation if either of two conditions are met. First, if the franchisee breaches the agreement in a way that allows for immediate termination as described in section 13.2 of the agreement, Bhc can terminate the agreement without a settlement meeting or mediation. Second, if the franchisee fails to pay any sums due to Bhc under the agreement, which may result in termination as described in section 13.3, Bhc can also proceed with termination without these preliminary steps.

This means that a Bhc franchisee needs to be particularly diligent in adhering to all terms of the franchise agreement to avoid breaches that could lead to immediate termination. Paying all required fees and other sums on time is also critical. Failure to do so could bypass the dispute resolution process and lead directly to the termination of the franchise agreement.

It is important for prospective franchisees to carefully review sections 13.2 and 13.3 of the franchise agreement to fully understand what actions or omissions could trigger immediate termination and what payments are required to be made to Bhc. Understanding these conditions is crucial for maintaining a good relationship with Bhc and avoiding potential termination of the franchise agreement.