Does Bhc currently require a service contract for the Computer System used in Bhc Restaurants?
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
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, Bhc does not currently mandate that franchisees purchase a service contract for the Computer System used in their restaurants. However, Bhc retains the right to require such a contract in the future.
If Bhc decides to implement a mandatory service contract, the FDD states that the current annual cost for such a contract is estimated to be between $4,000 and $10,000 per year. This cost would be the responsibility of the franchisee. 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.
Bhc franchisees are responsible for the acquisition, operation, maintenance, and upgrading of the Computer System. Bhc, its affiliates, or any third party are not obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System. Franchisees must also maintain a dedicated phone line and modem for Bhc's computer system to interface with theirs and have their BHC Restaurant connected to the Internet using a method approved by Bhc, such as DSL or Cable modem. Franchisees must also maintain a permanent Internet email account.
Bhc also reserves the right to access the Computer System to retrieve, analyze, download, and use all software, data, and files stored or used on it. Franchisees must provide accurate and complete disclosure of their books and accounts and give Bhc direct access to any third parties through which revenue is generated, including services like Uber Eats and Door Dash. These stipulations highlight the importance of franchisees maintaining and upgrading their computer systems as required by Bhc, and the potential costs associated with these requirements.