Who bears the cost of acquiring the right to use hardware, software, peripheral equipment, and accessories for the Computer System in Bhc Restaurants?

According to Bhc's 2025 Franchise Disclosure Document, the franchisee bears the cost of acquiring the right to use hardware, software, peripheral equipment, and accessories for the Computer System. Specifically, the franchisee, their Affiliate Franchisee, and their 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 their cost. There are no contractual limitations on the frequency and cost of this obligation.

This means that franchisees are responsible for all expenses related to the Computer System, including purchasing the necessary hardware and software, as well as any ongoing maintenance and support. 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 MFA. Bhc also reserves the right to change the software each year.

Furthermore, 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 their Computer System. They may also 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 Bhc approves, currently DSL or Cable modem, and have a permanent Internet email account. The data storage, phone line, modem, communication software, Internet access, Internet email account and all additional hardware and software needed to implement and maintain these services is at the franchisee's cost.

The Computer System will generate reports on the sales and expenses of the BHC Restaurants, and it currently costs between $7,000 and $10,000. Bhc may independently access the Computer System and retrieve, analyze, download, and use all software, data and files stored or used on the Computer System. Bhc may also access the Computer System through their intranet, in the franchisee's BHC Restaurant or from other locations.