Can Bhc dismantle the Intranet at any time, and if so, what are the liability implications?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
8.13 Intranet.
- (a) Franchisor may, at its option, establish and maintain an "Intranet" through which (i) BHC franchisees may communicate with each other, (ii) Franchisor and Franchisee may communicate with each other and (iii) Franchisor may disseminate the Operations Manual, updates thereto and other confidential information. Franchisor has full discretion and control over all aspects of any such Intranet, including the content and functionality thereof. Franchisor will have no obligation to maintain the Intranet indefinitely and may dismantle it at any time without liability to Franchisee.
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 dismantle its Intranet system at any time without incurring any liability to its franchisees. The Intranet is described as a communication tool that Bhc may choose to establish, allowing franchisees to communicate with each other and with Bhc, and for Bhc to distribute the Operations Manual, updates, and other confidential information. Bhc maintains full control over all aspects of the Intranet, including its content and functionality.
This provision means that Bhc franchisees cannot depend on the Intranet as a permanent fixture for communication or access to information. While Bhc may find the Intranet useful for disseminating information and facilitating communication, it is not obligated to maintain it indefinitely. The risk for franchisees is that a communication tool they rely on could be discontinued at any time, potentially requiring them to adapt to new methods of communication and information sharing.
It is fairly common for franchisors to reserve the right to modify or discontinue systems like Intranets, as business needs and technology evolve. However, franchisees should consider the potential impact of such changes on their operations and communication with the franchisor and other franchisees. Prospective franchisees may want to inquire about Bhc's long-term plans for communication and information sharing to better understand the potential for disruptions.