What impression must the Master Franchisee avoid giving the public after termination of the Bhc Master Franchise Agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) In the event of termination, cancellation or expiration of this Agreement whether by reason of Master Franchisee's breach, default, non-renewal, lapse of time or other cause, in addition to any other obligations provided for in this Agreement, Master Franchisee must forthwith discontinue the use or display of the Marks in any manner whatsoever, and Master Franchisee may not thereafter operate or do business under the Marks or any other BHC brand or any other name or in any manner that might tend to give the general public the impression that Master Franchisee is in any way associated or affiliated with Franchisor, or any of the businesses conducted by Franchisor or the Owner of the Marks, including without limitation repainting the business premises in a distinctively different color and removing or rearranging distinctive elements of the Trade Dress. Master Franchisee must contact online review sites and other online directories and websites which have made reference to Master Franchised BHC Restaurant during the 18 months prior to the date this Agreement terminates, is cancelled, or expires, and request the removal of all use of the trademarks in connection with the former BHC franchised BHC Restaurant (and the physical address of the former BHC Restaurant) and all use of former reviews from the period Master Franchisee was a BHC Master Franchisee. And, Master Franchisee also must comply with section 15.2 respecting the return to Franchisor of certain materials and must not thereafter use, in any manner, or for any purpose, directly or indirectly, any of the Proprietary Information, Trade Secrets, procedures, techniques, or materials acquired by Master Franchisee by virtue of the relationship established by this Agreement, including, without limitation, (i) any training or other materials, manuals, bulletins, instruction sheets, or supplements thereto, or (ii) any equipment, videotapes, videodiscs, forms, advertising matter, devices, insignias, slogans or designs used from time to time in connection with the Franchised Business.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, following the termination, cancellation, or expiration of the Master Franchise Agreement, the Master Franchisee must not give the general public the impression that they are in any way associated or affiliated with Bhc. This includes any businesses conducted by Bhc or the owner of the Marks.
To prevent this impression, the Master Franchisee is obligated to discontinue using or displaying Bhc's Marks in any manner. They cannot operate or conduct business under the Bhc brand or any other name that might suggest an association with Bhc. This extends to actions such as repainting business premises in a distinctively different color and altering the trade dress to clearly differentiate from Bhc's established image.
Furthermore, the Master Franchisee is required to contact online review sites, directories, and websites that referenced the franchised Bhc Restaurant within 18 months prior to the termination date. The Master Franchisee must request the removal of all trademarks associated with the former Bhc restaurant, including its physical address, and all reviews from the period when they operated as a Bhc Master Franchisee. This ensures a clean break and prevents confusion among customers.
Additionally, the Master Franchisee must not use any proprietary information, trade secrets, procedures, techniques, or materials acquired during their time as a franchisee. This includes training materials, manuals, equipment, advertising matter, and designs associated with the Bhc franchised business. These measures are in place to protect Bhc's brand identity and prevent unfair competition from former franchisees.