Must Bhc franchisees maintain a phone line and modem dedicated for Bhc's computer system interface?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
and information in the manner we specify, including through our intranet or other online communications. You also must, and ensure that your Affiliated Franchisee and Subfranchisees, maintain a phone line and a separate modem dedicated for the sole use of allowing our computer system to interface and communicate with your Computer System and you may need to, and ensure that your Affiliated Franchisee and Subfranchisees, purchase software designated by us for this to occur. You also must, and ensure that your Affiliated Franchisee and Subfranchisees, have your BHC Restaurant connected to the Internet using a connection method we approve, currently DSL or Cable modem. You must, and ensure that your Affiliated Franchisee and Subfranchisees, have a permanent Internet email account. You understand that the data storage, phone line, modem, communication software, Internet access, Internet email account and all additional hardware and software needed to implement and maintain these services is at your, your Affiliate Franchisee's and you Subfranchisees' cost. The Computer System will allow us to communicate with you, your Franchisee, and your Subfranchisees, and poll and review the results of the BHC Restaurants' operations, including without limitation, sales data, consumer trends, food and labor costs, and other financial information. You must, and ensure that your Affiliated Franchisee and Subfranchisees, provide accurate, complete, and full disclosure of the books and accounts and give us direct access to any third parties through which revenue is generated, including but not limited to, Uber Eats, Postmates, Eat24, and Door Dash. We may distribute the collected data on a confidential basis to our network of franchisees. We reserve the right to replace our designated supplier(s) for the Computer System as we deem necessary at our discretion.
(7) Operations Manual
We will loan you one copy of our Operations Manual ("Operations Manual") (containing a total of 145 pages) and other applicable manuals during the relevant phases of initial training (see section 8.2 of the MFA).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees must maintain a dedicated phone line and modem for Bhc's computer system to interface and communicate with the franchisee's computer system. Franchisees may also need to purchase software designated by Bhc for this purpose. Additionally, franchisees must ensure their Bhc Restaurant is connected to the Internet via a method approved by Bhc, currently DSL or Cable modem, and maintain a permanent Internet email account. The franchisee bears the costs for data storage, the phone line, modem, communication software, Internet access, the Internet email account, and any additional hardware and software required to maintain these services.
The computer system allows Bhc to communicate with franchisees and review the results of the Bhc Restaurants' operations, including sales data, consumer trends, food and labor costs, and other financial information. Franchisees must provide accurate and complete disclosure of their books and accounts and give Bhc direct access to any third parties through which revenue is generated, such as Uber Eats, Postmates, Eat24, and Door Dash. Bhc may distribute the collected data on a confidential basis to its network of franchisees.
Bhc also requires franchisees to purchase and use a technology system for their Master Franchise Business and ensure their Affiliated Franchisee and Subfranchisees purchase and use the specified Computer System for the Master Franchised Bhc Restaurants. The Computer System generates reports on the sales and expenses of the Bhc Restaurants, and it currently costs between $7,000 and $10,000. The franchisee is solely responsible for the acquisition, operation, maintenance, and upgrading of the Computer System. Bhc does not currently require franchisees to purchase a maintenance, repair, upgrade, or update service contract for the Computer System, but reserves the right to do so in the future. The current annual cost of a service contract is approximately $4,000 to $10,000 per year.
Bhc reserves the right to change the point-of-sale cash register system and back-of-office computer at any time but will not require franchisees to replace these items more than three times during the initial term of the MFA. Bhc reserves the right to change the software each year. Franchisees may be required to make certain payments to Bhc or its designated suppliers at such time as Bhc designates the change or enhancement to the Computer System. Franchisees must install and commence using the changed or enhanced Computer System within such time as stated in Bhc's notice. Franchisees must acquire the right to use hardware, software, peripheral equipment, and accessories, and arrange for installation, maintenance, and support services of the initial, changed, or enhanced Computer System all at their cost. There are no contractual limitations on the frequency and cost of this obligation.