factual

Is Bhc or any affiliate obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System used in Bhc Restaurants?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

s on the sales and expenses of the BHC Restaurants, and it currently costs between $7,000 and $10,000.

  • (ii) You, your Affiliate Franchisee, and your Subfranchisees will be solely responsible for the acquisition, operation, maintenance, and upgrading of the Computer System. Neither we, nor any affiliate or third party, is obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System.
  • (iii) We currently do not require that you purchase a maintenance, repair, upgrade, or update service contract for the Computer System, but we reserve the right to do so in the future.
  • (iv) The current annual cost of a service contract is approximately $4,000 to $10,000 per year. We reserve the right to change the point-of-sale cash register system and back-of-office computer at any time but will not require you to replace these items more than three times during the initial term of the MFA. We reserve the right to change the software each year. At such time as we designate the change or enhancement to the Computer System you, your Affiliate Franchisee, and your Subfranchisees may be required to make certain payments to us or our designated suppliers. You, your Affiliate Franchisee, and your Subfranchisees must install and commence using the changed or enhanced Computer System within such time as stated in our notice to you. You, your Affiliate Franchisee, and your Subfranchisees must acquire the right to use hardware, software, peripheral equipment, and accessories, and arrange for installation, maintenance, and support services of the initial, changed, or enhanced Computer System all at your cost. There are no contractual limitations on the frequency and cost of this obligation. We reserve the right to develop proprietary software. You may be required to license the proprietary software from us, an affiliate or a third party, and you also may be required to pay a software licensing or use fee in connection with your use of the proprietary software. All right, title and interest in the software will remain with the licensor of the software. We may independently access the Computer System and retrieve, analyze, download, and use all software, data and files stored or used on the Computer System.
  • (v) We may access the Computer System through our intranet, in your, your Affiliated Franchisee's and your Subfranchisees' BHC Restaurant or from other locations. You must, and ensure that your Affiliated Franchisee and Subfranchisee, Restaurant all data and information that we designate and report data and information in the manner we specify, including through our intranet or other online communications. You also must, and ensure that your Affiliated Franchisee and Subfranchisees, maintain a phone line and a separate modem dedicated for the sole use of allowing our computer system to interface and communicate with your Computer System and you may need to, and ensure that your Affiliated Franchisee and Subfranchisees, purchase software designated by us for this to occur. You also must, and ensure that your Affiliated Franchisee and Subfranchisees, have your BHC Restaurant connected to the Internet using a connection method we approve, currently DSL or Cable modem. You must, and ensure that your Affiliated Franchisee and Subfranchisees, have a permanent Internet email account.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, neither Bhc nor any affiliate or third party is obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System. The franchisee is solely responsible for the acquisition, operation, maintenance, and upgrading of the Computer System. This includes the costs associated with hardware, software, peripheral equipment, accessories, installation, maintenance, and support services for the initial, changed, or enhanced Computer System. Bhc reserves the right to change the point-of-sale cash register system and back-of-office computer at any time, but will not require franchisees to replace these items more than three times during the initial term of the Master Franchise Agreement (MFA). Bhc also reserves the right to change the software each year.

While Bhc does not currently require franchisees to purchase a maintenance, repair, upgrade, or update service contract for the Computer System, they reserve the right to do so in the future. The current annual cost of a service contract is approximately $4,000 to $10,000 per year. If Bhc designates a change or enhancement to the Computer System, franchisees may be required to make certain payments to Bhc or their designated suppliers and must install and commence using the changed or enhanced Computer System within the time stated in Bhc's notice. There are no contractual limitations on the frequency and cost of this obligation.

Bhc may independently access the Computer System to retrieve, analyze, download, and use all software, data, and files stored or used on it. They may access the Computer System through their intranet, in the franchisee's BHC Restaurant, or from other locations. Franchisees must ensure that all designated data and information is reported in the manner specified by Bhc, including through their intranet or other online communications. Franchisees must also maintain a phone line and a separate modem dedicated for the sole use of allowing Bhc's computer system to interface and communicate with the franchisee's Computer System and may need to purchase software designated by Bhc for this to occur. Franchisees must also have their BHC Restaurant connected to the Internet using a connection method approved by Bhc, currently DSL or Cable modem, and have a permanent Internet email account. The costs associated with data storage, phone line, modem, communication software, Internet access, and Internet email account are the responsibility of the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.