Who benefits from the franchisee's use of the Marks under the Bhc franchise agreement?

According to Bhc's 2025 Franchise Disclosure Document, the franchisee's use of the Marks under the franchise agreement primarily benefits Bhc and the owner of the Marks. While franchisees are granted the right to use and display the Marks during the term of the agreement, this use is a temporary, authorized privilege. All goodwill generated through the use of the Marks ultimately accrues to the benefit of Bhc and the Marks' owner.

This means that while franchisees can leverage the brand recognition and reputation associated with the Marks to operate their franchised business, they do not gain any ownership or lasting benefit from the goodwill they help create. Upon termination or expiration of the franchise agreement, the franchisee must discontinue all use of the Marks and cannot operate under any name that might imply association with Bhc. This includes removing any references to the Bhc brand from online review sites and directories.

Furthermore, Bhc retains the right to use the franchisee's name, image, and likeness, as well as those of their principal equity operators and employees, for marketing and promotional purposes without providing any compensation. All materials created by the franchisee that incorporate the Marks become the sole property of the Marks' owner. This ensures that Bhc maintains control over its brand and marketing efforts, and that the franchisee's use of the Marks solely benefits Bhc and the Marks' owner.

This arrangement is typical in franchising, where the franchisor owns the brand and trademarks, and franchisees are granted a limited license to use them. The franchisee's investment in building the business contributes to the overall brand equity, but the franchisor retains ultimate ownership and control of the brand.