If Bhc designates a change or enhancement to the Computer System, who may be required to make payments and to whom?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
At such time as we designate the change or enhancement to the Computer System you, your Affiliate Franchisee, and your Subfranchisees may be required to make certain payments to us or our designated suppliers.
You, your Affiliate Franchisee, and your Subfranchisees must install and commence using the changed or enhanced Computer System within such time as stated in our notice to you.
You, your Affiliate Franchisee, and your Subfranchisees 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 your cost.
There are no contractual limitations on the frequency and cost of this obligation.
We reserve the right to develop proprietary software.
You may be required to license the proprietary software from us, an affiliate or a third party, and you also may be required to pay a software licensing or use fee in connection with your use of the proprietary software.
All right, title and interest in the software will remain with the licensor of the software.
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, if Bhc designates a change or enhancement to the Computer System, franchisees, their Affiliate Franchisees, and Subfranchisees may be required to make certain payments. These payments would be made either to Bhc or to Bhc's designated suppliers. Franchisees are obligated to install and begin using the changed or enhanced Computer System within the timeframe specified in Bhc's notice.
Franchisees, Affiliate Franchisees, and Subfranchisees are responsible for acquiring the right to use the hardware, software, peripheral equipment, and accessories necessary for the Computer System. They also must arrange for the installation, maintenance, and support services, all at their own cost. The FDD specifies that there are no contractual limitations on the frequency and cost of this obligation, meaning these expenses could arise frequently and be substantial.
Bhc also reserves the right to develop proprietary software, which franchisees may be required to license from Bhc, an affiliate, or a third party. Franchisees may also be required to pay a software licensing or use fee in connection with the proprietary software. All rights, title, and interest in the software will remain with the licensor of the software. This means that franchisees will not own the software but will only have the right to use it under the terms of the license agreement.