What is the deadline for a Bhc franchisee to notify Bhc of an infringement of its marks to be eligible for reimbursement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
While we are not required to defend you against a claim against your use of our Marks, we will reimburse you for your liability and reasonable costs in connection with defending our Marks. To receive reimbursement, you must have notified us immediately when you learned about the infringement or challenge.
Source: Item 14 — Patents, Copyrights, And Proprietary Information (FDD pages 41–42)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must notify Bhc immediately upon learning of any infringement or challenge to the use of Bhc's marks in order to be eligible for reimbursement of liability and reasonable costs incurred in defending those marks.
This immediate notification is a critical condition for receiving financial support from Bhc in defending against claims related to the use of its trademarks. If a franchisee delays reporting such an issue, they risk losing the right to have Bhc cover their liability and associated defense costs. This requirement ensures that Bhc can promptly take appropriate action to protect its brand and trademarks.
In the event that Bhc modifies or discontinues the use of a principal trademark, Bhc will reimburse the franchisee for tangible costs of compliance, such as changing signs. However, to be eligible for reimbursement related to defending Bhc's marks, the franchisee's immediate notification is essential. This policy aligns with standard franchise practices, where franchisors typically require prompt notification of any potential trademark issues to protect the overall brand and system.