After the Bhc franchise agreement terminates, what must the franchisee not use?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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. And, Franchisee also must comply with section 15.2 respecting the return to Franchisor of certain materials and must not thereafter use, in any manner, or for any purpose, directly or indirectly, any of the Proprietary Information, Trade Secrets, procedures, techniques, or materials acquired by Franchisee by virtue of the relationship established by this Agreement, including, without limitation, (i) any training or other materials, manuals, bulletins, instruction sheets, or supplements thereto, or (ii) any equipment, videotapes, videodiscs, forms, advertising matter, devices, insignias, slogans or designs used from time to time in connection with the Franchised Business.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, upon termination, cancellation, or expiration of the Franchise Agreement, a franchisee must discontinue all use of Bhc's Marks and is prohibited from operating under the Bhc brand or any similar name that might imply association with Bhc.
Specifically, the franchisee cannot use any of Bhc's Proprietary Information, Trade Secrets, procedures, techniques, or materials acquired during the franchise relationship. This includes training materials, manuals, bulletins, instruction sheets, supplements, equipment, videotapes, videodiscs, forms, advertising matter, devices, insignias, slogans, or designs used in connection with the franchised business.
In practical terms, this means a former Bhc franchisee must completely rebrand their business to avoid any confusion with the Bhc brand. They must also remove all Bhc-related materials and information from their operations to protect Bhc's intellectual property and trade secrets. This is a standard practice in franchising to ensure brand integrity and prevent unfair competition after a franchise agreement ends.