Can a Bhc franchisee use the Marks in connection with any business activity outside the scope of the Franchised Business?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Franchisee nor any Principal Equity Operator nor any employee, agent, or representative thereof may use or display the Marks and Intellectual Property in connection with the operation of any business or other activity that is outside the scope of the Franchised Business. Franchisee may only use the Marks and Intellectual Property on the Internet or other electronic media in the manner and as specifically authorized by Franchisor in the Operations Manual or otherwise in writing. Franchisee agrees to be responsible for and supervise all its employees and agents to insure the proper use of the Marks and Intellectual Property in compliance with this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from using the Marks and Intellectual Property associated with Bhc in any business or activity that falls outside the scope of their franchised business. This restriction extends not only to the franchisee but also to any Principal Equity Operator, employee, agent, or representative thereof. Bhc franchisees are only allowed to use the Marks and Intellectual Property on the Internet or other electronic media if specifically authorized by Bhc in the Operations Manual or in writing.
This restriction ensures that the Bhc brand and its associated intellectual property are exclusively used for the operation of franchised Bhc restaurants, maintaining brand consistency and preventing misuse. The franchisee is responsible for supervising all employees and agents to ensure they comply with the agreement regarding the proper use of the Marks and Intellectual Property. This includes preventing unauthorized use in any business ventures outside the scope of the Bhc franchise.
The agreement also emphasizes that the franchisee's right to use the Marks and Intellectual Property is a temporary authorization under the franchise agreement. Bhc and the owner of the Marks retain all ownership interests and goodwill generated by the Marks. Any unauthorized use of the Marks outside the terms of the agreement constitutes an infringement of Bhc's rights. Upon termination or expiration of the franchise agreement, the franchisee must immediately discontinue all use of the Marks.