What actions are prohibited regarding the use of Bhc's marks, operational techniques, service concepts, or proprietary information outside of the franchised Bhc business?

According to the 2025 FDD, Bhc strictly limits the use of its marks, operational techniques, service concepts, and proprietary information to the franchised business. A franchisee cannot use Bhc's intellectual property in connection with any businesses or services other than the franchised Bhc restaurant without express prior written permission from Bhc. If permission is granted, those additional businesses or services become part of the franchised business and are subject to royalty and marketing/promotion fees. This restriction applies during the term of the franchise agreement.

This means a Bhc franchisee's activities must remain focused on the Bhc restaurant. They cannot apply Bhc's methods or branding to other ventures without explicit approval, and any approved extensions of the business will generate additional fees. This protects Bhc's brand integrity and ensures that franchisees are not diluting the brand by applying it to unrelated businesses without contributing to the system's marketing efforts.

Upon termination or expiration of the franchise agreement, the franchisee's rights to use Bhc's marks and other intellectual property cease entirely. The franchisee must discontinue all use of the marks and cannot operate under any name or manner that suggests an association with Bhc. This includes actions like repainting the business premises and removing distinctive trade dress elements. The franchisee is also responsible for contacting online review sites to remove references to the Bhc trademarks from their former location.

These restrictions are typical in franchising, as franchisors need to protect their brand and prevent franchisees from leveraging the franchisor's intellectual property for unauthorized purposes, especially after the franchise relationship ends. Prospective Bhc franchisees should carefully consider these limitations and ensure they are comfortable with the scope of the permitted business activities.