Can a franchisee directly or indirectly contest Bhc's right to its trademarks?

According to Bhc's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from directly or indirectly contesting Bhc's rights to its trademarks, trade secrets, or business techniques that are part of its business. This restriction is a standard clause in franchise agreements designed to protect the franchisor's intellectual property and brand identity.

This provision means that a franchisee cannot initiate or participate in any legal or administrative challenge against Bhc's trademarks. This includes actions such as filing a lawsuit, opposition, or cancellation proceeding against Bhc's trademarks. The franchisee is also barred from supporting or assisting any third party in contesting Bhc's trademark rights.

The purpose of this clause is to ensure that franchisees do not undermine the value and distinctiveness of the Bhc brand. By preventing franchisees from contesting its trademarks, Bhc aims to maintain consistent brand standards and protect its reputation. This restriction is a significant consideration for prospective franchisees, as it limits their ability to challenge Bhc's intellectual property rights, even if they believe there may be grounds to do so.

In the event of an infringement or challenge to the use of Bhc's marks, the franchisee must notify Bhc immediately. Bhc retains sole discretion to take any action it deems appropriate to protect its interests, including controlling any litigation or U.S. Patent and Trademark Office proceeding. The franchisee is obligated to assist Bhc in these efforts by signing documents and providing necessary assistance.