What is the agreement dated between Bhc USA LLC and the Master Franchisee related to?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS AGREEMENT, dated | of | , by and between BHC USA LLC ("Franchisor") and (the "Master Franchisee"). All capitalized terms not |
|---|---|---|
| otherwise defined herein shall have the meanings set forth in the Franchise Agreement, defined below. | ||
| Agreement dated | The Franchisor has granted to the Master Franchisee, pursuant to that certain Multi-Unit Master Franchise | |
| (the "Master Franchise Agreement"), the right to develop and | ||
| operate a 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: | ||
| (1) | The undersigned acknowledges that the Operations Manual and other Proprietary | |
| Information now or hereafter provided to Master Franchisee | ||
| by the Franchisor is proprietary to the | ||
| Franchisor and must be held in the utmost and strictest confidence. | ||
| (2) | The undersigned represents and agrees that the undersigned will not, without the prior | |
| written consent of the Franchisor, either: | ||
| a. | Duplicate or otherwise reproduce the Operations Manual or other Proprietary | |
| Information; | ||
| b. | Deliver or make available the Operations Manual or other Proprietary Information to | |
| any person other than an authorized representative of the Franchisor; | ||
| c. | Discuss or otherwise disclose the contents of the Operations Manual or other | |
| Proprietary Information to any person other than an authorized representative of the | ||
| Franchisor; or |
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the agreement between Bhc USA LLC and the Master Franchisee, also referred to as the Multi-Unit Master Franchise Agreement, grants the Master Franchisee the right to develop and operate a Bhc restaurant. In exchange for this right, the Master Franchisee receives and uses the Operations Manual and other proprietary information from Bhc. This proprietary information includes methods, strategies, techniques related to operations, marketing, training, advertising, trade secrets, recipes, and other confidential data.
The Master Franchisee agrees to maintain the confidentiality of the Operations Manual and all proprietary information provided by Bhc. Specifically, the Master Franchisee is prohibited from duplicating or reproducing the Operations Manual or any other proprietary information without prior written consent from Bhc. They also cannot deliver or make available the Operations Manual or proprietary information to any unauthorized person. Discussing or disclosing the contents of the Operations Manual or proprietary information to anyone other than an authorized representative of Bhc is also forbidden.
Furthermore, the Master Franchisee must open at least one franchised Bhc restaurant before granting rights to third-party subfranchisees. The location of this restaurant must be secured by the Master Franchisee and approved by Bhc within four months of the agreement's effective date. The Master Franchisee is responsible for reimbursing Bhc for all costs incurred during the site review process. If a site is not approved within a specified timeframe, the Master Franchisee must propose an alternative location. Bhc may cancel the agreement if an acceptable site is not found within the four-month period.