Who bears the expense of removing signs bearing the Bhc Marks after termination?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If there is a termination, cancellation or expiration as described in section 15.1(a) above, Franchisee must comply with section 11.2 of this Agreement respecting post-termination competition and also promptly:
- (i) remove at Franchisee's expense all signs erected or used by Franchisee and bearing the Marks, or any word or mark indicating that Franchisee is associated or affiliated with Franchisor;
- (c) If 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 Franchisee's 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 Franchisee's expense, which expenses 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, in the event of termination, cancellation, or expiration of the franchise agreement, the franchisee is responsible for the expense of removing all signs bearing Bhc's marks. This includes any signs erected or used by the franchisee that indicate an association or affiliation with Bhc.
Specifically, the franchisee must remove these signs at their own expense. If the franchisee fails to do so, Bhc has the right to enter the premises after providing 15 days written notice and remove the signs themselves. The franchisee will then be responsible for promptly paying Bhc for these removal expenses upon demand.
This requirement ensures that upon termination, the public is not misled into believing that the former franchisee is still part of the Bhc system. It also protects Bhc's brand and trademarks by preventing unauthorized use after the franchise agreement ends. Prospective franchisees should be aware of this financial responsibility when considering the franchise agreement, as sign removal can represent a significant cost depending on the extent of signage.