In the event of termination of the Bhc franchise agreement, what must the franchisee do with the business premises?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
enses and compensation payable to the arbitrator), whether incurred prior to or in preparation for or in contemplation of the filing of the action or thereafter. The prevailing party will be determined by the arbitrator or court. This section 14.4 is (i) intended to be expressly severable from the other provisions of this Agreement, (ii) intended to survive any judgment, and (iii) not to be deemed merged into the judgment.
14.5 Survival.
The terms of this Article 14 survive termination, expiration or cancellation of this Agreement.
15. OBLIGATIONS AND RIGHTS UPON TERMINATION OR EXPIRATION
15.1 Franchisee's Obligations.
(a) In the event of termination, cancellation or expiration of this Agreement whether by reason of Franchisee's breach, default, non-renewal, lapse of time or other cause, in addition to any other
obligations provided for in this Agreement, Franchisee must forthwith discontinue the use or display of the Marks in any manner whatsoever, and Franchisee may not thereafter operate or do business under the Marks or any other BHC brand or any other name or in any manner that might tend to give the general public the impression that Franchisee is in any way associated or affiliated with Franchisor, or any of the businesses conducted by Franchisor or the Owner of the Marks, including without limitation repainting the business premises in a distinctively different color and removing or rearranging distinctive elements of the Trade Dress. Franchisee must contact online review sites and other online directories and websites which have made reference to Franchisee's Franchised BHC Restaurant during the 18 months prior to the date this Agreement terminates, is cancelled, or expires, and request the removal of all use of the trademarks in connection with the former BHC Franchised BHC Restaurant (and the physical address of the former Franchised BHC Restaurant) and all use of former reviews from the period Franchisee was a BHC franchisee.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, in the event of termination, cancellation, or expiration of the Franchise Agreement, the franchisee must immediately discontinue the use or display of Bhc's marks. The franchisee cannot operate under the Bhc brand or any name that could give the impression of affiliation with Bhc. This includes repainting the business premises in a distinctively different color and removing or rearranging distinctive elements of the trade dress.
Additionally, the franchisee is obligated to contact online review sites and directories that referenced the Bhc restaurant within 18 months prior to termination. They must request the removal of all trademarks associated with the former Bhc restaurant, including its physical address and reviews from the period they were a franchisee.
The franchisee must also comply with section 15.2 of the agreement, which pertains to returning specific materials to Bhc. The franchisee is prohibited from using any proprietary information, trade secrets, procedures, techniques, or materials acquired during the franchise relationship. This includes training materials, manuals, equipment, and advertising materials. These obligations survive the termination, expiration, or cancellation of the agreement.