If Bhc designates specific computer software, what is the Master Franchisee required to do?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if Bhc designates specific computer software to be used in the operation of the Computer System, also known as "Designated Software", the Master Franchisee has specific obligations. The Master Franchisee must license or sublicense the Designated Software from Bhc's designee. They must also ensure that their sub-licensees also license or sublicense the software.
In addition to licensing the software, the Master Franchisee is required to enter into a software license agreement using the software licensor's current form. They must also pay any related license or maintenance fees associated with the software. Furthermore, both the Master Franchisee and their sub-franchisees may be required to purchase upgrades, enhancements, or replacements to the Designated Software as they become available or necessary.
Finally, the Master Franchisee is obligated to incorporate any required modifications or additions to the Designated Software within the timeframe specified in a notice sent by Bhc. This ensures that all systems are up-to-date and compliant with Bhc's standards. These requirements ensure uniformity and compatibility across all Bhc franchise locations, allowing Bhc to maintain system-wide standards and protect its brand.