If Bhc establishes an Intranet, what discretion does Bhc have over the Intranet's content and functionality?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
8.13 Intranet.
- (a) Franchisor may, at its option, establish and maintain an "Intranet" through which (i) BHC franchisees may communicate with each other, (ii) Franchisor and Franchisee may communicate with each other and (iii) Franchisor may disseminate the Operations Manual, updates thereto and other confidential information. Franchisor has full discretion and control over all aspects of any such Intranet, including the content and functionality thereof. Franchisor will have no obligation to maintain the Intranet indefinitely and may dismantle it at any time without liability to Franchisee.
- (b) If establishes an Intranet, Franchisee must use it in strict compliance with the standards and specifications, protocols and restrictions Franchisor establishes regarding such use. Such standards and specifications, protocols and restrictions may provide, restrict or otherwise relate to (i) the use of abusive, slanderous or otherwise offensive language in electronic communications, (ii) communications between or among BHC franchisees that disparage Franchisor or endorse or encourage breach of any BHC franchise agreement, or other agreement with Franchisor or Franchisor's affiliates, (iii) confidential treatment of materials that Franchisor transmits via the Intranet, (iv) password protocols and other security precautions, including limitations on the number and types of employees who may be granted access to the Intranet, (v) grounds and procedures for Franchisor's suspending or revoking a BHC
franchisee's access to the Intranet, and (vi) a privacy policy governing Franchisor's access to and use of electronic communications that franchisees post to the Intranet. Franchisee acknowledges that, as administrator of the Intranet, Franchisor can access and view any communication that any person posts on the Intranet. Franchisee further acknowledges that the Intranet facility and all communications posted to it are Franchisor's property, free of any claims of privacy or privilege that Franchisee or any other person may assert.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if Bhc chooses to establish an Intranet, it retains full control over all aspects, including the content and functionality. This Intranet would serve as a communication platform between Bhc franchisees, and between Bhc and its franchisees. Bhc may also use it to distribute the Operations Manual, updates, and other confidential information. Bhc is not obligated to maintain the Intranet indefinitely and can dismantle it at any time without liability to the franchisee.
If Bhc establishes an Intranet, franchisees must adhere strictly to Bhc's standards, specifications, protocols, and restrictions. These may regulate various aspects, including the use of offensive language, communications that disparage Bhc or encourage breaches of franchise agreements, the confidential handling of materials transmitted via the Intranet, password protocols, security precautions, and grounds for suspending or revoking a franchisee's access. Bhc, as the Intranet's administrator, can access and view any communication posted on it.
Furthermore, the FDD states that the Intranet facility and all communications posted to it are Bhc's property, free of any privacy claims from franchisees. Franchisees must maintain an electronic connection with the Intranet to allow Bhc to send and receive messages, subject to Bhc's standards and specifications. This level of control is typical in franchising, allowing Bhc to maintain brand consistency and operational standards across all franchise locations.