Are customer lists considered 'Confidential Information' for a Bhc franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
facturing of fried chicken, sandwich, and other products offered in BHC Restaurants and which constitute 10% or more of the gross retail sales of any BHC Restaurant.
- "Confidential Information" means information, know-how, and materials that are of value to Franchisor (or other third party, as applicable) and treated as confidential by Franchisor and is disclosed or made known or available to Master Franchisee or its employees or agents. Without limiting the generality of the foregoing, the term "Confidential Information" includes, without limitation: (i) the Operations Manual; (ii) all technical and non-technical information, including without limitation, information concerning finances, financing and capital raising plans, accounting or marketing, business opportunities, affiliate lists, business plans, forecasts, predictions, projections, recipes, products, research, development, and know-how; (iii) "Intellectual Property" (as defined in this Article 1), the Marks, BHC Products, insignias, designs, and materials subject to copyright, patent, or trademark registration; (iv) any developments, inventions, improvements, additions, modifications, enhancements, derivatives, ideas, reports, analyses, opinions, studies, data or other materials or work product, whether prepared by Franchisor or otherwise, that contain or are based upon the proprietary information; (v) information regarding customers and potential customers of the Franchised Business, including customer lists, names, needs or desires with respect to the products or services offered, contracts and their contents and parties, the type and quantity of products and services provided or sought to be provided to customers and potential customers of the Franchised Business and other non-public information relating to customers and potential customers; (vi) information regarding any of Franchisor's business partners or affiliates and their services, including names, representatives, proposals, bids, contracts and their contents and parties, the type and quantity of products and services received by the discloser, and other non-public information relating to business partners; (vii) information regarding personnel, includi
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, customer lists are considered Confidential Information. The FDD defines "Confidential Information" broadly to include data of value to Bhc that is treated as confidential and disclosed to the franchisee. This definition specifically encompasses information regarding customers and potential customers of the franchised business.
This includes, without limitation, customer lists, names, their needs or desires concerning the products or services Bhc offers, contracts and their contents, the type and quantity of products and services provided or sought, and other non-public information related to customers and potential customers. This means a Bhc franchisee must treat all data related to customers as confidential and protect it from unauthorized disclosure.
Bhc also considers all information on the Computer System, including customer data and contact information, to be Bhc's property. Bhc maintains the right to use this information in any way it sees fit, subject to privacy laws and policies, including marketing other products and services. This highlights that while franchisees operate the business, the customer data generated belongs to Bhc, giving Bhc significant control over customer-related information and marketing strategies.