What actions must a Bhc Master Franchisee take regarding the use of Marks upon termination, cancellation, or expiration of the Agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
g party will be determined by the arbitrator or court. This section 14.4 is (i) intended to be expressly severable from the other provisions of this Agreement, (ii) intended to survive any judgment, and (iii) not to be deemed merged into the judgment.
14.5 Survival.
The terms of this Article 14 survive termination, expiration or cancellation of this Agreement.
15. OBLIGATIONS AND RIGHTS UPON TERMINATION OR EXPIRATION
15.1 Master Franchisee's Obligations.
(a) In the event of termination, cancellation or expiration of this Agreement whether by reason of Master Franchisee's breach, default, non-renewal, lapse of time or other cause, in addition to any other obligations provided for in this Agreement, Master Franchisee must forthwith discontinue the use or display of the Marks in any manner whatsoever, and Master Franchisee may not thereafter operate or do business under the Marks or any other BHC brand or any other name or in any manner that might tend to give the general public the impression that Master Franchisee is in any way associated or affiliated with Franchisor, or any of the businesses conducted by Franchisor or the Owner of the Marks, including without limitation repainting the business premises in a distinctively different color and removing or rearranging distinctive elements of the Trade Dress. Master Franchisee must contact online review sites and other online directories and websites which have made reference to Master Franchised BHC Restaurant during the 18 months prior to the date this Agreement terminates, is cancelled, or expires, and request the removal of all use of the trademarks in connection with the former BHC franchised BHC Restaurant (and the physical address of the former BHC Restaurant) and all use of former reviews from the period Master Franchisee was a BHC Master Franchisee. And, Master Franchisee also must comply with section 15.2 respecting the return to Franchisor of certain materials and must not thereafter use, in any manner, or for any purpose, directly or indirectly, any of the Proprietary Information, Trade Secrets, procedures, techniques, or materials acquired by Master Franchisee by virtue of the relationship established by this Agreement, including, without limitation, (i) any training or other materials, manuals, bulletins, instruction sheets, or supplements thereto, or (ii) any equipment, videotapes, videodiscs, forms, advertising matter, devices, insignias, slogans or designs used from time to time in connection with the Franchised Business.
(b) If there is a termination, cancellation or expiration as described in section 15.1(a) above, Master Franchisee must comply with section 11.2 of this Agreement respecting post-termination competition and also promptly:
(i) remove at Master Franchisee's expense all signs erected or used by Master Franchisee and bearing the Marks, or any word or mark indicating that Master Franchisee is associated or affiliated with Franchisor;
(ii) erase or obliterate from letterheads, stationery, printed matter, advertising, or other forms used by Master Franchisee the Marks and all words indicating that Master Franchisee is associated or affiliated with Franchisor;
(iii) permanently discontinue all advertising stating or implying Master Franchisee is associated or affiliated with Franchisor or the System (if Master Franchisee engages in any business thereafter, Master Franchisee must use trade names, service marks or trademarks that are significantly different from those under which Master Franchisee had done business and must use sign formats that are significantly different in color and type face; and take all necessary steps to ensure that Master Franchisee's present and former employees, agents, officers, shareholders and partners observe the foregoing obligations); and
(iv) assign all interest and right to use all telephone numbers and all telephone and social media listings applicable to the BHC Restaurant in use at the time of such termination to Franchisor and take all actions necessary to change all such telephone numbers immediately and change all such telephone and social media listings as soon as possible.
(v) pay to the Franchisor all Royalties, other fees, and any and all amounts or accounts payable then owed the Franchisor or its affiliates pursuant to this Agreement, or pursuant to any other agreement, whether written or oral, including subleases and lease assignments, between the parties.
(c) If Master Franchisee fails or omits to make or cause to be made any removal or change described in section 15.1(b)(i) – (v) above, then Franchisor will have the right within 15 days after written notice to enter Master Franchised BHC Restaurant or other premises from which the Franchised Business is being conducted without being deemed guilty of trespass or any other tort, and make or cause to be made such removal and changes at Master Franchisee's expense, which expenses Master Franchisee agrees to pay to Franchisor promptly upon demand.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee faces several obligations regarding the use of Bhc's Marks upon termination, cancellation, or expiration of their agreement. The Master Franchisee must immediately stop using or displaying the Marks in any way. They cannot operate or conduct business under the Bhc Marks or any other name that could suggest affiliation with Bhc. This includes repainting the business premises in a different color and altering the trade dress. The Master Franchisee must also contact online review sites and directories to request removal of all trademark use and reviews related to the former Bhc restaurant from the past 18 months. Additionally, they must not use any proprietary information or trade secrets acquired during the franchise relationship.
Furthermore, the Master Franchisee is required to remove all signs bearing the Marks at their own expense and erase or obliterate the Marks from all business-related materials, including letterheads and advertising. They must permanently discontinue any advertising that implies association with Bhc. If the Master Franchisee engages in any business thereafter, they must use significantly different trade names and sign formats. The Master Franchisee must also ensure that their employees and agents adhere to these obligations. All telephone numbers and social media listings associated with the Bhc Restaurant must be assigned to Bhc, with immediate changes to the telephone numbers and social media listings. The Master Franchisee must also pay all outstanding royalties, fees, and amounts owed to Bhc.
If the Master Franchisee fails to comply with these requirements, Bhc has the right to enter the premises after 15 days written notice and make the necessary removals and changes at the Master Franchisee's expense. The Master Franchisee acknowledges that using the Marks outside the agreement's terms infringes on Bhc's rights. All rights to use the Marks within the franchised system are Bhc's exclusive property, and the Master Franchisee cannot claim any goodwill or ownership due to their use of the Marks. Bhc also has the right to use the Master Franchisee's name, image, and likeness for marketing and promotion purposes without compensation.