factual

If a Bhc franchisee is an entity, can it use the Marks 'BHC' in its legal name?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (i) If Franchisee is an entity, it cannot use the Marks "BHC" in its legal name.

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, if a franchisee is an entity, it is not allowed to use the marks "BHC" in its legal name. However, the franchisee is required to identify the franchised business under a trade name containing the mark "BHC" authorized by Bhc, along with the words "INDEPENDENTLY OWNED AND OPERATED" on letterheads, contract agreements, invoices, advertising, and other written materials as directed by Bhc.

This means that while a franchisee cannot legally register their company with "BHC" in the name, they can and must use "BHC" in the trade name under which they operate the restaurant. This distinction is important for legal and branding purposes. The franchisee must also file and keep current a fictitious business name statement, assumed name certificate, or similar document regarding the franchisee's business name in the relevant jurisdiction.

Bhc retains control over the use of its trademarks and ensures that franchisees do not misrepresent themselves as being directly part of the Bhc corporation. This protects the brand's integrity and prevents confusion among customers. Upon termination of the franchise agreement, the franchisee must discontinue using the marks and cooperate with Bhc to end the use of the business name registrations. This ensures a clean break and prevents unauthorized use of the Bhc brand after the franchise relationship ends.

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.