Who bears the expense of removing signs bearing the Marks after a Bhc Master Franchisee's termination?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(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;
(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, the Master Franchisee is responsible for the expenses associated with removing all signs bearing Bhc's marks after termination, cancellation, or expiration of the Master Franchise Agreement. This includes any signs erected or used by the Master Franchisee that display Bhc's marks or indicate affiliation with Bhc.
In practical terms, this means that upon termination of the agreement, the Master Franchisee must promptly arrange and pay for the removal of all Bhc-related signage from the premises. This obligation ensures that the public is not misled into believing that the terminated Master Franchisee is still associated with the Bhc brand.
Furthermore, if the Master Franchisee fails to remove the signs, Bhc has the right to enter the premises after providing 15 days written notice and remove the signs themselves at the Master Franchisee's expense. The Master Franchisee is then obligated to promptly reimburse Bhc for these expenses. This provision protects Bhc's brand integrity and ensures consistent brand representation even after a franchise agreement ends.