If proprietary software is required for Bhc Restaurants, who retains the rights to the software?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to develop proprietary software.
You may be required to license the proprietary software from us, an affiliate or a third party, and you also may be required to pay a software licensing or use fee in connection with your use of the proprietary software.
All right, title and interest in the software will remain with the licensor of the software.
We may independently access the Computer System and retrieve, analyze, download, and use all software, data and files stored or used on the Computer System.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if the franchisor develops proprietary software that franchisees are required to license, the rights to that software will remain with the licensor. This could be Bhc itself, an affiliate, or a third party. Franchisees may also be required to pay a software licensing or use fee in connection with using the proprietary software.
This means that while franchisees must use the software and potentially pay for it, they will not own it. Bhc retains control over the software, including updates, modifications, and potential replacements. This is a common arrangement in franchising, as it allows the franchisor to maintain consistency and control over the brand's technology.
Bhc also reserves the right to access the computer system and retrieve, analyze, download, and use all software, data, and files stored or used on the computer system. This access allows Bhc to monitor operations, gather data, and ensure compliance with system standards. Franchisees are responsible for acquiring the right to use the hardware, software, peripheral equipment, and accessories, and arranging for installation, maintenance, and support services of the computer system at their own cost.