Can Bhc disclose information relating to a franchisee's operation to prospective franchisees?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisor may disclose information relating to Franchisee's operation of the Franchised Business, including, but not limited to, Gross Revenues, customer counts, and other related data, to future prospective franchisees.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc has the right to disclose information about a franchisee's business operations to potential new franchisees. This includes details such as Gross Revenues, customer counts, and other related data. This information can be used by Bhc to provide prospective franchisees with insights into the performance of existing locations.
For a prospective Bhc franchisee, this means that Bhc may share details about your restaurant's performance with others who are considering joining the franchise system. While this can be beneficial in showcasing successful franchise locations, it also means that your financial and operational data will not be kept strictly confidential from other potential business owners. Franchisees should consider how this might affect their competitive position or privacy.
It is common practice in the franchise industry for franchisors to share performance data of existing franchisees with potential franchisees. This helps prospective franchisees make informed decisions. However, franchisees should be aware of exactly what information is being shared and how it is being presented to ensure transparency and fairness.