When identifying the Bhc Restaurant, what specific trade name requirements must the Master Franchisee adhere to in advertising and business dealings?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) In connection with Master Franchisee's and Subfranchisees' operation of the BHC Restaurant, Master Franchisee agrees that at all times and in all advertising, promotions, signs and other display materials, on Master Franchisee's letterheads, business forms, and at the BHC Restaurant and other authorized business sites, in all of Master Franchisee's business dealings related thereto and to the general public, Master Franchisee will identify the Franchised Business solely under a trade name containing the Mark "BHC" and authorized by Franchisor ("Business Name") together with the words "INDEPENDENTLY OWNED AND OPERATED" on Master Franchisee's letterhead, contract agreements, invoices, advertising and other written materials containing the Marks as Franchisor may direct.
(b) Master Franchisee must file and keep current a fictitious business name statement, assumed name certificate or similar document regarding Master Franchisee's Business Name in the county or other designated jurisdiction in which Master Franchisee is conducting business and at such other places as may be required by law. Before Master Franchisee commences engaging in the Franchised Business under the Marks, Master Franchisee must supply evidence satisfactory to Franchisor that Master Franchisee has complied with relevant laws regarding the use of fictitious or assumed names.
(c) On expiration or sooner termination of this Agreement, Franchisor may, if Master Franchisee does not do so, execute in Master Franchisee's name and on Master Franchisee's behalf all documents necessary, in Franchisor's judgment, to end and cause a discontinuance of the use by Master Franchisee of the Marks and Business Name registrations and Franchisor is hereby irrevocably appointed and designated as Master Franchisee's attorney-in-fact to do so.
(d) Master Franchisee further agrees it will not identify itself as (i) Franchisor, (ii) a subsidiary, parent, division, shareholder, partner, joint venture, agent or employee of Franchisor or the Owner of the Marks or (iii) any of Franchisor's other Master Franchisees.
(e) If Master Franchisee is an entity, it cannot use the Marks "BHC" in its legal name.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee operating a Bhc restaurant must adhere to specific trade name requirements in all advertising and business dealings. The Master Franchisee must identify the franchised business solely under a trade name containing the mark "BHC" as authorized by Bhc. Additionally, the trade name must include the words "INDEPENDENTLY OWNED AND OPERATED" on letterheads, contract agreements, invoices, advertising, and other written materials, as directed by Bhc. This ensures that the public understands the restaurant is independently owned and operated under a Bhc franchise.
Furthermore, the Master Franchisee is required to file and maintain a current fictitious business name statement, assumed name certificate, or similar document regarding the business name in the relevant jurisdiction. Before commencing business operations, the Master Franchisee must provide evidence to Bhc that they have complied with all relevant laws regarding the use of fictitious or assumed names. This step is crucial for legal compliance and transparency in business operations. Upon termination of the agreement, Bhc is authorized to execute documents to discontinue the Master Franchisee's use of the marks and business name if the Master Franchisee fails to do so.
The Master Franchisee must not identify themselves as Bhc itself, or as a subsidiary, parent, division, shareholder, partner, joint venture, agent, or employee of Bhc. They also cannot represent themselves as another Master Franchisee of Bhc. If the Master Franchisee is an entity, it is prohibited from using the "BHC" mark in its legal name. These restrictions are in place to prevent confusion among customers and to maintain the distinct identities of Bhc and its franchisees. These requirements are typical in franchising to protect the brand and ensure consistent messaging.