What happens if a Bhc Master Franchisee fails to comply with the post-termination obligations?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) If Master Franchisee fails or omits to make or cause to be made any removal or change described in section 15.1(b)(i) – (v) above, then Franchisor will have the right within 15 days after written notice to enter Master Franchised BHC Restaurant or other premises from which the Franchised Business is being conducted without being deemed guilty of trespass or any other tort, and make or cause to be made such removal and changes at Master Franchisee's expense, which expenses Master Franchisee agrees to pay to Franchisor promptly upon demand.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a Master Franchisee fails to fulfill the post-termination obligations outlined in Section 15.1(b)(i) – (v), Bhc has the right to take action. Bhc can enter the Master Franchisee's BHC Restaurant or other premises where the franchised business was conducted, without being considered guilty of trespass or any other tort. This right is exercisable within 15 days after providing written notice to the Master Franchisee.
Bhc is then entitled to make the necessary removals and changes to ensure compliance with the post-termination obligations. These changes and removals will be at the Master Franchisee's expense. The Master Franchisee is obligated to promptly pay these expenses to Bhc upon demand.
These post-termination obligations include removing all signs bearing Bhc's marks, erasing Bhc's marks from all forms of advertising and printed materials, discontinuing advertising that implies association with Bhc, assigning all telephone numbers and social media listings to Bhc, and paying all outstanding royalties and fees. This ensures a clean break between the franchisee and the Bhc brand, protecting Bhc's brand identity and preventing consumer confusion.