Is a Bhc franchisee required to pay license or maintenance fees for Designated Software?

According to Bhc's 2025 Franchise Disclosure Document, franchisees are required to pay license or maintenance fees for Designated Software. Bhc may designate specific computer software to be used in the operation of the Computer System. If Bhc designates software, the franchisee must obtain a license or sublicense for it from Bhc's designee. As part of this, the franchisee must enter into a software license agreement and pay any related license or maintenance fees.

In addition to the initial licensing and maintenance fees, Bhc franchisees may also be required to purchase upgrades, enhancements, or replacements to the Designated Software. Franchisees are obligated to incorporate any required modifications or additions within the timeframe specified by Bhc. This ensures that all franchisees are using the most current and compatible software versions, which can help maintain system-wide consistency and efficiency.

This requirement ensures that Bhc franchisees use approved and standardized software, which allows for better data integration, system-wide updates, and support. However, it also means that franchisees must budget for these ongoing software costs, including potential upgrades and maintenance fees. Franchisees do not have a choice regarding which software to use, as Bhc mandates the Designated Software. Therefore, it is important for prospective franchisees to understand these potential costs and factor them into their financial projections.