If Bhc decides to use a public figure, will the franchisees have to purchase new equipment?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
8.5 Maintenance, Upgrades and Refurbishments to the Franchised BHC Restaurant.
- (a) Franchisor requires Franchisee to maintain and periodically refurbish the Franchised BHC Restaurant to conform to the then- current building design, Trade Dress, and color schemes then applicable for a Franchised BHC Restaurant. Such maintenance and refurbishment may require expenditures by Franchisee on, among other things, structural changes, installing new equipment, remodeling, redecoration and modifications to existing improvements and such modifications as may be necessary to comply with System-wide standards then in effect for Franchised BHC Restaurants or to accommodate new BHC Products. Accordingly, Franchisee must (i) maintain all equipment used at the Franchised BHC Restaurant on an as needed basis, (ii) immediately and completely resolve to Franchisor's satisfaction any maintenance deficiencies Franchisor identifies and (iii) make all upgrades to equipment and any technology used in Franchised BHC Restaurant that Franchisor may require.
- (b) Franchisor may periodically require Franchisee to update the Trade Dress used at the Franchised BHC Restaurant. Such updates will be contained in the Operations Manual or otherwise provided to Franchisee in writing. Such updates may require Franchisee to install new color schemes, logos, signage, or other visual elements. Franchisor anticipates that such Trade Dress updates will be required no more frequently than once every five years.
- (c) Franchisee will always be required to make upgrades and refurbishments to the Franchised BHC Restaurant before renewing the Franchise pursuant to section 5.2(f) of this Agreement. Otherwise, Franchisor will only require the types of modifications and expenditures described in sections 8.5(a) and 8.5(b) if Franchisor makes a good faith determination that the Franchised BHC Restaurant is substantially inconsistent with prevailing System-wide standards (including the Trade Dress, safety issues regarding customers and employees, the overall condition of the Franchised BHC Restaurant, or the type, quality or condition of the equipment needed to adequately prepare, promote and sell BHC Products) and that, as a result of its appearance or condition, the Franchised BHC Restaurant is either (i) not adequately positioned to promote and sell BHC Products as then required or (ii) damaging the integrity of the BHC image, brand or Marks.
Source: Item 18 — Public Figures (FDD page 49)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees may be required to purchase new equipment if Bhc decides to use a public figure in its advertising and the existing restaurant appearance is deemed inconsistent with system-wide standards. Bhc requires franchisees to maintain and periodically refurbish their restaurants to conform to the current building design, trade dress, and color schemes. This includes upgrades to equipment and technology.
These refurbishments may involve expenditures on structural changes, installing new equipment, remodeling, redecoration, and modifications to comply with system-wide standards or accommodate new Bhc products. Bhc may periodically require franchisees to update the trade dress, potentially involving new color schemes, logos, signage, or other visual elements. These updates are typically provided in the Operations Manual or in writing and are anticipated no more frequently than once every five years.
Bhc will only require modifications and expenditures if it determines in good faith that the restaurant is substantially inconsistent with prevailing system-wide standards, including trade dress, safety issues, overall condition, or the type, quality, or condition of equipment needed to adequately prepare, promote, and sell Bhc products. If the restaurant's appearance or condition is not adequately positioned to promote and sell Bhc products or is damaging the integrity of the Bhc image, brand, or marks, upgrades may be mandated.