Before using a Subfranchise Agreement or Other Agreement for the first time, what must the Master Franchisee do regarding Bhc?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to entering into any form Subfranchise Agreement or any other form agreements, including an area development agreement or lease addendum (collectively, "Other Agreements"), for the first time with a prospective subfranchisee or Subfranchisee, Master Franchisee shall submit to and receive Franchisor's approval of such proposed form Subfranchise Agreement or Other Agreement.
In addition, once a form Subfranchise Agreement or Other Agreement has been approved, Master Franchisee shall not modify the terms of such form documents without submitting to and receiving Franchisor's prior written approval of such modified form documents.
Master Franchisee's form Subfranchise Agreement and Other Agreements shall include terms and conditions consistent with this Agreement and as prescribed by Franchisor from time to time, including the maximum size of the territory granted under any Subfranchise Agreement or Other Agreement.
Executed copies of each Subfranchise Agreement and any related Other Agreements shall be sent to Franchisor before the opening of the relevant approved BHC Restaurant for Franchisor's records.
Executed copies of any Other Agreements Master Franchisee enters into with Subfranchisees shall be sent to Franchisor within thirty (30) days of the date of execution.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, before a Master Franchisee can use a Subfranchise Agreement or any Other Agreements, they must first submit the proposed agreement form to Bhc and receive written approval. This includes agreements like area development agreements or lease addendums. This requirement applies to the initial use of any such agreement with a prospective subfranchisee.
Furthermore, once Bhc approves a Subfranchise Agreement or Other Agreement form, the Master Franchisee cannot change the terms without first submitting the revised form to Bhc and receiving prior written approval. The terms and conditions within the Master Franchisee's Subfranchise Agreement and Other Agreements must align with the Master Franchise Agreement and any guidelines Bhc prescribes, including stipulations on the maximum territory size granted under these agreements.
After the Subfranchise Agreement and Other Agreements are executed, the Master Franchisee is required to send copies to Bhc for their records. This must be done before the relevant Bhc Restaurant opens. Additionally, copies of any Other Agreements entered into with subfranchisees must be sent to Bhc within thirty days of execution. These measures ensure Bhc maintains control over its brand standards and legal compliance within the subfranchise network.