Does the Bhc franchisee receive compensation for assigning rights to 'Works' to the franchisor?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent that any such Works may not constitute a work for hire, Franchisee hereby grants, assigns, and transfers all right, title and interest in and to such Works, including all rights in and to the Intellectual Property therein, without compensation, to Franchisor and agrees to execute any and all further documents and things reasonably required by Franchisor to effect and record such assignment.
If Franchisee has any such rights that cannot be assigned to Franchisor, Franchisee waives the enforcement of such rights, and if Franchisee has any rights which cannot be assigned or waived, Franchisee hereby grants to Franchisor an exclusive, irrevocable, perpetual, worldwide, fully paid license (with right to
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees do not receive compensation for assigning rights to their 'Works' to the franchisor. The FDD states that any materials, artwork, graphics, layouts, slogans, names, titles, or text created by the franchisee, their employees, agents, or subcontractors that incorporate or are used in connection with Bhc's marks become the sole property of the owner of the marks, which is the franchisor.
Specifically, the franchisee irrevocably assigns all such 'Works' to Bhc without compensation. This includes all intellectual property rights associated with those works. The agreement explicitly states that these 'Works' are considered 'work for hire' and are owned by and for the benefit of Bhc.
Even if any portion of the 'Works' does not qualify as 'work for hire', the franchisee still grants, assigns, and transfers all rights, titles, and interests to Bhc without receiving any compensation. Furthermore, the franchisee agrees to execute any additional documents required to formalize and record this assignment. In the event that the franchisee possesses rights that cannot be assigned, they waive the enforcement of those rights. If any rights cannot be assigned or waived, the franchisee grants Bhc an exclusive, irrevocable, perpetual, worldwide, fully paid license to use them.