factual

If Bhc establishes an Intranet, what standards must a Master Franchisee comply with?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) If establishes an Intranet, Master 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 Master 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 Master Franchisee's access to the Intranet, and (vi) a privacy policy governing Franchisor's access to and use of electronic communications that Master Franchisees post to the Intranet. Master Franchisee acknowledges that, as administrator of the Intranet, Franchisor can access and view any communication that any person posts on the Intranet. Master 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 Master 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 establishes an Intranet, a Master Franchisee must adhere to the standards, specifications, protocols, and restrictions that Bhc establishes for its use. These standards may address several areas, including the prohibition of abusive, slanderous, or offensive language in electronic communications.

Bhc may also restrict communications among Master Franchisees that disparage Bhc or encourage breaches of any Bhc franchise agreement or other agreements with Bhc or its affiliates. The standards will likely require confidential treatment of materials transmitted via the Intranet and specify password protocols and other security precautions, including limitations on the number and types of employees who may access the Intranet.

Additionally, the standards may outline grounds and procedures for Bhc to suspend or revoke a Master Franchisee's access to the Intranet and include a privacy policy governing Bhc's access to and use of electronic communications posted by Master Franchisees. The Master Franchisee acknowledges that Bhc, as the Intranet's administrator, can access and view any communication posted on it, and that the Intranet and all communications are Bhc's property, free from any claims of privacy or privilege.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.