What actions are Bhc franchisees prohibited from taking regarding the Proprietary Information and related materials provided by the franchisor?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
At Initial Training and other training programs and conferences, Franchisor may provide Franchisee with Proprietary Information, as well as training materials, training curricula and related materials for Franchisee's use in training Franchisee's staff. All of these items are and will remain Franchisor's sole and exclusive property. Franchisee must not, nor allow its employees or others to, copy, reproduce, disseminate, or otherwise reveal to third parties any Proprietary Information and related materials, without Franchisor's express prior written consent.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees face specific restrictions regarding the use and handling of proprietary information. Bhc considers all training materials, curricula, and related items provided to franchisees as the sole and exclusive property of Bhc. Franchisees are explicitly prohibited from copying, reproducing, disseminating, or revealing this proprietary information and related materials to any third parties without obtaining express prior written consent from Bhc. This restriction extends not only to the franchisee but also to their employees and any other individuals associated with the franchise. This is to protect Bhc's trade secrets and maintain a competitive advantage.
Bhc emphasizes that franchisees gain access to proprietary information, including trade secrets, solely because of their status as a franchisee within the Bhc system. This information is not generally known within the broader industry or to the public, and franchisees are expected to treat it with strict confidentiality. Franchisees acknowledge that they acquire no ownership interest in the proprietary information, other than the right to utilize it specifically for the development and operation of their franchised Bhc restaurant during the term of the franchise agreement.
Furthermore, franchisees must not take any actions that could undermine Bhc's rights related to its marks. This includes any behavior that could harm the goodwill associated with the marks or the Bhc system. Franchisees are obligated to use the marks only in the manner that is franchised and licensed under the agreement. These restrictions apply both during the term of the agreement and after its termination, ensuring the continued protection of Bhc's proprietary assets and brand reputation.