If an idea or concept is created concerning a Bhc Restaurant, who owns it?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
All ideas, concepts, techniques, or materials concerning a BHC Restaurant, whether protectable intellectual property and whether created by or for you or your owners or employees, must be promptly disclosed to us and will be deemed to be our sole and exclusive property, part of the system, and works made-for-hire for us. To the extent any item does not qualify as a "work made-for-hire" for us, you assign ownership of that item, and all related rights to that item, without compensation, to us and must take whatever action (including signing assignment or other documents) we request to show our ownership or to help us obtain intellectual property rights in the item.
Source: Item 14 — Patents, Copyrights, And Proprietary Information (FDD pages 41–42)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, any ideas, concepts, techniques, or materials related to a Bhc Restaurant, regardless of who creates them (the franchisee, their owners, or employees), are considered the sole and exclusive property of Bhc. This includes both protectable intellectual property and non-protectable items.
This means that if a franchisee or their staff develops a new recipe, marketing strategy, or operational improvement for the Bhc restaurant, they must disclose it to Bhc. Bhc will then own the rights to that idea, and it becomes part of the Bhc system. The FDD specifies that these creations are considered "works made-for-hire" for Bhc.
If, for any reason, an idea does not legally qualify as a "work made-for-hire", the franchisee is obligated to assign ownership of the idea and all related rights to Bhc without any compensation. The franchisee must also take any actions, such as signing documents, that Bhc deems necessary to demonstrate its ownership or to help Bhc secure intellectual property rights for the idea. This is a fairly standard practice in franchising, as franchisors need to maintain uniformity and control over their brand and system.
This clause underscores the importance of understanding the intellectual property ownership terms in the franchise agreement. While franchisees may contribute to the Bhc system through their innovations, they will not retain ownership of those contributions. Prospective franchisees should carefully consider this aspect and discuss any concerns with Bhc before signing the franchise agreement.