Is a Bhc franchisee permitted to identify itself as a subsidiary, parent, division, shareholder, partner, joint venture, agent, or employee of Bhc?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Franchisee further agrees it will not identify itself as (i) Franchisor, (ii) a subsidiary, parent, division, shareholder, partner, joint venture, agent or employee of Franchisor or the Owner of the Marks or (iii) any of Franchisor's other franchisees.
- (i) If Franchisee is an entity, it cannot use the Marks "BHC" in its legal name.
9.3 Trade Secrets and Proprietary Information.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from misrepresenting their relationship with the company. Specifically, franchisees cannot identify themselves as a subsidiary, parent, division, shareholder, partner, joint venture, agent, or employee of Bhc. This restriction is in place to ensure clarity and prevent any potential confusion about the franchisee's independent status.
This requirement is a standard practice in franchising, designed to protect the integrity of the Bhc brand and prevent any legal or financial liabilities that could arise from misrepresentation. By mandating that franchisees identify as independently owned and operated, Bhc maintains a clear distinction between the franchisor and franchisee, which is crucial for managing brand reputation and legal compliance.
Furthermore, Bhc requires that franchisees use a trade name containing the "BHC" mark, along with the words "INDEPENDENTLY OWNED AND OPERATED" on letterheads, contracts, invoices, advertising, and other written materials. This ensures that customers are always aware that they are dealing with an independent business owner operating under the Bhc brand, not directly with the Bhc corporation. This also applies to Master Franchisees, who cannot identify themselves as any other Master Franchisees of Bhc.