factual

How does a Bhc franchisee agree to display the Marks in their territory?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

the Intranet that allows Franchisor to send messages to, and receive messages from Franchisee, subject to Franchisor's standards and specifications.

8.14 Franchise Advisory Council.

At this time, there is no advertising council of franchisees that advises us regarding advertising and promotional programs or policies for Franchised BHC Restaurants generally. Franchisor does not currently require Franchisees to participate in a local or regional advertising cooperative. No local or regional advertising cooperative exists in Franchisor's system at this time.

9. PROPRIETARY MARKS

9.1 License of the Marks.

  • (a) Franchisor hereby grants Franchisee the right during the term hereof to use and display the Marks in accordance with the provisions contained in this Agreement and in the Operations Manual, solely in connection with Franchisee's operation of the Franchised Business at the Franchised BHC Restaurant, and in the Territory. Neither Franchisee nor any Principal Equity Operator nor any employee, agent, or representative thereof may use, display, or permit the use or display of trademarks, trade names, service marks, insignias, or logo types other than the Marks and other trademarks and service marks approved for use by Franchisor in connection with the Franchised Business. Neither Franchisee nor any Principal Equity Operator nor any employee, agent, or representative thereof may use or display the Marks and Intellectual Property in connection with the operation of any business or other activity that is outside the scope of the Franchised Business. Franchisee may only use the Marks and Intellectual Property on the Internet or other electronic media in the manner and as specifically authorized by Franchisor in the Operations Manual or otherwise in writing. Franchisee agrees to be responsible for and supervise all its employees and agents to insure the proper use of the Marks and Intellectual Property in compliance with this Agreement.
  • (b) Franchisee acknowledges and agrees (i) Franchisee's use of the Marks and Intellectual Property is a temporary authorized use under this Agreement, (ii) the Owner of the Marks retains all ownership interests in the Marks, and (iii) Franchisor and the Owner of the Marks retain all ownership of the goodwill generated by the Marks. Franchisee acknowledges that the use of the Marks outside the scope of the terms of this Agreement without Franchisor's written consent is an infringement of the Owner of the Marks' and Franchisor's exclusive right, title, and interest in and to the Marks and Intellectual Property. Franchisee agrees that as between Franchisee and Franchisor, all rights to use the Marks and Intellectual Property within the franchised System are Franchisor's exclusive property. Franchisee now asserts no claim and will hereafter assert no claim to any goodwill, reputation, or ownership thereof because of Franchisee's use thereof or otherwise. It is expressly understood and agreed that ownership and title of the Trade Dress, Operations Manual and Franchisor's other manuals, bulletins,

instruction sheets, forms, methods of operation and goodwill are and, as between Franchisee and Franchisor, remain vested solely in Franchisor, and the use thereof is only co-extensive with the term of this Agreement.

  • (c) Franchisee agrees that during the term of the Franchise, and after any assignment, expiration or termination of the Franchise, Franchisee will not, directly or indirectly, commit an act of infringement or contest or aid others in contesting the validity, distinctiveness, secondary meaning, ownership or enforceability of the Marks or Intellectual Property, or take any other action in derogation of the Marks or Intellectual Property, and that no monetary amount will be assigned as attributable to any goodwill associated with Franchisee's use of the System, the Marks or Intellectual Property.
  • (d) Franchisee hereby grants Franchisor the right at any time to use the name, image and likeness of Franchisee and all Principal Equity Operators for commercial purposes in connection with the marketing and promotion of the Marks, Franchisor's Intellectual Property, BHC Products, any BHC business location and the System, without any form of compensation or remuneration. Franchisee also agrees (i) to have any affected employee of Franchisee who is not a Principal Equity Operator sign a release in the form contained in the Operations Manual authorizing Franchisor to also use the employee's name, image and likeness for the purposes described in this section 9.1(d), without compensation or remuneration, and (ii) to provide Franchisor with a copy of such signed release. The terms of this section 9.1(d) survive termination or expiration of this Agreement.
  • (e) Franchisee acknowledges that Franchisor prescribes uniform standards respecting the nature and quality of BHC Products provided by Franchisee in connection with which the Marks are used. Nothing herein gives Franchisee any right, title, or interest in or to any of the Marks, except a mere privilege and license during the term hereof to display and use the same and Franchisee agrees that all of Franchisee's use of the Marks under this Agreement inures to Franchisor's benefit and the benefit of the Owner of the Marks.

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, franchisees are granted the right to use and display the Marks (trademarks, service marks, logos) during the term of the agreement, but strictly in accordance with the agreement's provisions and the Operations Manual. This usage is solely for operating the franchised Bhc restaurant within the designated territory. Franchisees must not use any marks other than those approved by Bhc.

Bhc franchisees must identify their franchised business using a trade name that includes "BHC" and is authorized by Bhc, along with the phrase "INDEPENDENTLY OWNED AND OPERATED." This identification must appear on all advertising, promotions, signs, display materials, letterheads, business forms, and at the restaurant location. Franchisees are also required to file and maintain a current fictitious business name statement or assumed name certificate for their business name in the relevant jurisdiction.

All signs, display materials, and other items displaying the Marks must fully comply with the specifications in the Operations Manual. Bhc will designate or approve the suppliers for these items. Subject to local regulations, franchisees must post and maintain any minimum signage recommended by Bhc at their own expense. Signage containing the Marks must be designed and manufactured by vendors designated or approved by Bhc. Upon termination of the franchise agreement, franchisees must discontinue the use of the Marks and Business Name, and Bhc is authorized to take necessary actions to ensure this discontinuation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.