Is a Bhc franchisee required to maintain an annual maintenance agreement for the Computer System?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Franchisee must purchase, use, and maintain the computerized point of sale cash collection system and integrated business computer (including all related hardware and software) as specified in the Operations Manual or otherwise by Franchisor in writing for use at the Franchised BHC Restaurant (the "Computer System"). The Computer System must always be powered on and connected to a dedicated high-speed communications medium specified by Franchisor, capable of accessing the Internet for the purpose of implementing software, transmitting, and receiving data, accessing the Internet in the manner designated by Franchisor in the Operations Manual or otherwise in writing. Franchisee must obtain and maintain an annual maintenance agreement with the manufacturer or distributor of the Computer System. The Computer System must be electronically linked to Franchisor. Franchisor may electronically access the Computer System and any of Franchisee's Internet domain names or email addresses on a daily or other basis at such times and in such manner as determined by Franchisor, with or without notice, to retrieve such transaction information including sales, sales mix, usage, and other operations data as Franchisor deems appropriate. Franchisee must ensure that only adequately trained employees conduct transactions using the Computer System. Within a reasonable time upon Franchisor's request, Franchisee must apply for and maintain debit cards, credit cards or other non-cash systems existing or developed in the future to enable customers to purchase BHC Products via such procedure, as specified by Franchisor. Franchisor may require Franchisee to update, upgrade or replace the Computer System, including hardware or software, periodically upon written notice. The Computer System must also be configured and enabled to send daily and weekly sales reports to the email address provided by Franchisor.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee is required to maintain an annual maintenance agreement for the Computer System. Specifically, the franchisee must obtain and maintain this agreement with either the manufacturer or distributor of the Computer System.
This requirement ensures that the Computer System used at the franchised Bhc Restaurant remains operational and up-to-date. The Computer System, which includes the point of sale cash collection system and integrated business computer, is crucial for daily operations, data transmission, and communication with Bhc. By mandating an annual maintenance agreement, Bhc aims to minimize disruptions and ensure that franchisees have access to necessary support and updates for their systems.
Furthermore, Bhc retains the right to access the Computer System electronically to retrieve transaction information, sales data, and other operational details. The franchisee is also responsible for ensuring that only adequately trained employees use the Computer System. Additionally, Bhc may require franchisees to update, upgrade, or replace the Computer System periodically, including both hardware and software, with written notice. These stipulations collectively emphasize the importance of maintaining a functional and compliant Computer System as a Bhc franchisee.