factual

Can the Bhc Franchisor electronically access the Computer System of the Master Franchisee and Subfranchisees?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

ing. To assist Franchisor in maintaining consumer brand recognition through advertising and an effective network of Master Franchisees, Master Franchisee specifically agrees it will not display the Marks except in the manner Franchisor authorizes.

8.4 Computer System.

(a) Master Franchisee must, and ensure Subfranchisees, 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 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. Master 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 Master Franchisee's and Subfranchisees' 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. Master Franchisee must ensure that only adequately trained employees and Subfranchisees conduct transactions using the Computer System. Within a reasonable time upon Franchisor's request, Master Franchisee must apply for, and ensure the Subfranchisees 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 Master 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.

  • (b) Franchisor may designate the computer software to be used in the operation of the Computer System ("Designated Software"). If Franchisor does so, Master Franchisee must license or sublicense, and ensure the Sublicensees license or sublicense, such Designated Software from Franchisor's designee and enter into a software license agreement on the software licensor's then-current form and pay any related license or maintenance fees. Master Franchisee and Subfranchises may also be required to purchase any upgrades, enhancements, or replacements to the Designated Software. Master Franchisee must incorporate any required modifications or additions within such time as stated in the notice sent by Franchisor.
  • (c) Master Franchisee may not install, and must prohibit others from installing, unauthorized software on the Computer System. Master Franchisee must take all commercially reasonable measures to ensure no malicious code, malware or other unauthorized code or software is installed on, or transmitted by, the Computer System.

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, Bhc may electronically access the Computer System of the Master Franchisee and Subfranchisees. The Master Franchisee and Subfranchisees must purchase, use, and maintain a specified computerized point of sale system and integrated business computer. This system must always be powered on and connected to a dedicated high-speed internet connection.

The Computer System must be electronically linked to Bhc, allowing Bhc to access it, along with any Internet domain names or email addresses, on a daily or other basis, with or without notice. Bhc can retrieve transaction information, including sales, sales mix, usage, and other operations data. The Master Franchisee must ensure that only adequately trained employees and Subfranchisees conduct transactions using the Computer System.

Furthermore, the Master Franchisee must communicate all passwords, access keys, and other security devices or systems necessary to permit Bhc to access the Computer System and obtain data, including accounting, sales, marketing, client, and other information. All information on the Computer System, including customer data and contact information, is Bhc's property, and the Master Franchisee consents to Bhc using this information in any way it sees fit, subject to privacy laws and policies.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.