Is the license to use the Bhc marks granted in the MFA exclusive to the franchisee?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
The license to use the Marks granted in the MFA is non-exclusive to you. We have and retain certain rights in the Marks including the following:
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- To grant other licenses for the use of the Marks in addition to those licenses already granted or to be granted to franchisees;
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- To develop and establish other systems using the Marks or other names or marks, and to grant licenses or franchises in those systems without providing any rights to you; and
- To engage, directly or indirectly, at wholesale, retail or otherwise, in (a) the production, distribution, license and sale of products and services, and (b) the use of the Marks and any and all trademarks, trade names, service marks, logos, insignia, slogans, emblems, symbols, designs and other identifying characteristics we may develop for that purpose.
Source: Item 13 — Trademarks (FDD pages 39–41)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the license to use the Marks granted in the Master Franchise Agreement (MFA) is non-exclusive to the franchisee. This means that Bhc retains certain rights regarding the Marks.
Specifically, Bhc has the right to grant other licenses for the use of the Marks to additional franchisees. Bhc can also develop and establish other systems using the Marks or other names or marks, and grant licenses or franchises in those systems without providing any rights to the existing franchisee. Furthermore, Bhc can engage directly or indirectly in the production, distribution, license, and sale of products and services, as well as the use of the Marks and any trademarks, trade names, service marks, logos, and other identifying characteristics they develop.
This non-exclusive arrangement has significant implications for a Bhc franchisee. It means that Bhc could license other franchisees to operate nearby, potentially increasing competition. Bhc could also create entirely new business systems using the same Marks, diluting the brand or drawing customers away. The franchisee's rights to the Marks are therefore limited, and Bhc retains considerable control over their use and development.