Does the Bhc franchisee gain any ownership rights to the Marks during the franchise term?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
r 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 do not acquire any ownership rights to the Marks (trademarks) during the franchise term. The FDD clearly states that the franchisee's use of the Marks is a temporary, authorized use under the Franchise Agreement. The owner of the Marks retains all ownership interests, and Bhc and the owner retain all ownership of the goodwill generated by the Marks.
Specifically, the franchisee acknowledges that their use of the Marks is only a temporary authorization, and they gain no enduring rights or ownership. All benefits from the use of the Marks accrue to Bhc and the Marks' owner. This means that any reputation or goodwill the franchisee builds through using the Marks belongs solely to Bhc.
Upon termination or expiration of the franchise agreement, the franchisee cannot claim any compensation for goodwill associated with the Marks. This is a standard clause in franchise agreements to protect the franchisor's intellectual property and brand identity. The franchisee's rights to use the Marks are strictly limited to the term of the agreement and in accordance with Bhc's guidelines.