What is a Bhc franchisee prohibited from doing with the franchisor's marks, operational techniques, service concepts, or proprietary information outside of the franchised Bhc restaurant?

According to Bhc's 2025 Franchise Disclosure Document, a franchisee is prohibited from using Bhc's marks, operational techniques, service concepts, or proprietary information in connection with any businesses or services other than the franchised business conducted at the franchised Bhc restaurant.

This restriction means that franchisees must obtain express prior written permission from Bhc if they wish to extend the use of the brand's intellectual property beyond the confines of their specific franchised location. If permission is granted, the additional businesses or services will fall under the scope of the franchise agreement. This inclusion would then subject any revenues generated from these activities to royalty and marketing and promotion fees as outlined in the franchise agreement.

This policy ensures that Bhc maintains control over its brand and operational methods, preventing unauthorized use that could potentially dilute the brand or compromise its standards. It also allows Bhc to benefit financially from any expansion of the franchisee's business that leverages the Bhc brand and system. Franchisees need to be aware that any deviation from this policy without prior approval could result in a breach of the franchise agreement.