Does Bhc currently require franchisees to purchase a service contract for the Computer System?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
rty, is obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System.
- (iii) We currently do not require that you purchase a maintenance, repair, upgrade, or update service contract for the Computer System, but we reserve the right to do so in the future.
- (iv) The current annual cost of a service contract is approximately $4,000 to $10,000 per year. We reserve the right to change the point-of-sale cash register system and back-of-office computer at any time but will not require you to replace these items more than three times during the initial term of the MFA. We reserve the right to change the software each year.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees are not currently required to purchase a service contract for the Computer System. However, Bhc retains the right to mandate such a contract in the future.
If Bhc decides to require a service contract, the current annual cost is estimated to be approximately $4,000 to $10,000 per year. Bhc also 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 Master Franchise Agreement (MFA). Additionally, Bhc can change the software each year.
Franchisees are solely responsible for the acquisition, operation, maintenance, and upgrading of the Computer System. This includes acquiring the right to use hardware, software, peripheral equipment, and accessories, as well as arranging for installation, maintenance, and support services, all at the franchisee's cost. There are no contractual limitations on the frequency and cost of this obligation. Bhc also reserves the right to develop proprietary software, which franchisees may be required to license from Bhc, an affiliate, or a third party, potentially incurring software licensing or use fees.