According to the agreement, what does Bhc consider 'Proprietary Information'?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS AGREEMENT, dated | , by and between BHC USA LLC ("Franchisor") and |
|---|---|
| of | (the "Franchisee"). All capitalized terms not otherwise |
| defined herein shall have the meanings set forth in the Franchise Agreement, defined below. | |
| The Franchisor has granted to the Franchisee, pursuant to that certain Franchise Agreement dated | |
| (the "Franchise Agreement"), the right to operate a Franchised BHC Restaurant. The | |
| undersigned, in consideration of the receipt and/or use of the Operations Manual and other information | |
| proprietary to the Franchisor, including but not limited to methods, strategies and techniques developed | |
| by the Franchisor or its affiliate relating to operations, marketing, training, advertising, trade secrets, | |
| recipes and other confidential data (collectively referred to as "Proprietary Information"), agrees with | |
| the Franchisor as follows: |
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Proprietary Information encompasses methods, strategies, and techniques developed by Bhc or its affiliates. This includes information related to operations, marketing, training, advertising, trade secrets, recipes, and other confidential data. Bhc grants franchisees access to this Proprietary Information, along with other confidential data, recognizing that this information constitutes Bhc's trade secrets.
Bhc emphasizes that all rights to the Marks, Proprietary Information, methods of operation, and other proprietary information are expressly reserved to Bhc, except as explicitly granted to the franchisee in the Franchise Agreement or the Operations Manual. Franchisees acknowledge that Bhc is the sole owner of all Proprietary Information, including trade secrets, and that this information is disclosed to them solely because of their status as a franchisee within the Bhc system. Franchisees gain no ownership interest in the Proprietary Information, only the right to use it for their franchised BHC Restaurant during the term of the agreement.
Franchisees are obligated to maintain the confidentiality of the Operations Manual and other Proprietary Information, holding it in the strictest confidence. They are prohibited from duplicating, reproducing, delivering, or disclosing the Operations Manual or Proprietary Information to any unauthorized person. Furthermore, franchisees cannot use the Operations Manual or Proprietary Information for any commercial advantage outside the scope of operating their Bhc franchise. These restrictions remain in effect both during and after the term of the Franchise Agreement, highlighting the importance Bhc places on protecting its Proprietary Information.