If Bhc establishes an Intranet, what standards and specifications must a franchisee follow?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
(c) Franchisee must establish and continually maintain (during all times that the Intranet is operational and until the termination of this Agreement) an electronic connection (the specifications of which will be specified in the Operations Manual) with the Intranet that allows Franchisor to send messages to, and receive messages from Franchisee, subject to Franchisor's standards and specifications.
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, franchisees must adhere to the standards, specifications, protocols, and restrictions that Bhc establishes for its use. These standards may relate to various aspects of communication and security within the Intranet. Bhc retains full discretion and control over all aspects of the Intranet, including its content and functionality. Bhc is not obligated to maintain the Intranet indefinitely and can dismantle it at any time without liability to the franchisee.
The standards and specifications may address the use of abusive or offensive language in electronic communications, as well as communications that disparage Bhc or encourage breaches of franchise agreements. Franchisees must also ensure the confidential treatment of materials transmitted via the Intranet and adhere to password protocols and other security precautions. These precautions may include limitations on the number and types of employees who can access the Intranet. Bhc also sets the grounds and procedures for suspending or revoking a franchisee's access to the Intranet and establishes a privacy policy governing Bhc's access to and use of electronic communications posted by franchisees.
As the administrator of the Intranet, Bhc can access and view any communication posted on it. The Intranet facility and all communications posted are considered Bhc's property, without any claims of privacy or privilege from the franchisee. Additionally, franchisees must maintain an electronic connection with the Intranet that allows Bhc to send and receive messages, subject to Bhc's standards and specifications. This connection must be maintained during all operational times of the Intranet and until the termination of the franchise agreement. This level of control and monitoring is typical in franchise systems to ensure brand consistency and protect proprietary information.