Is the license to use the Bhc trademarks granted to franchisees perpetual?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
BHC Korea owns the Trademarks and as described in Item 1, has licensed them to BHC so that we may sublicense them to our franchisees in the United States. The license is in perpetuity. Your use of the mark identified above as well as other trademarks, service marks, trade names and commercial symbols we may authorize in the future (collectively, the "Marks" or "Proprietary Marks"), and any goodwill is pursuant to a license granted to you under the MFA and you retain no further rights in the Marks. You also retain no rights in the Marks upon expiration or termination of your MFA. You are not permitted to make any changes or substitutions of any kind in or to the use of the Marks unless we direct in writing. We may change the System presently identified by the Marks, including the adoption of new Marks, new products, new equipment or new techniques and you must adopt the changes in the System. You must comply within a reasonable time if we notify you to discontinue or modify your use of any Mark. We will have no liability or obligation as to your modification or discontinuance of any Mark.
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 trademarks is granted to Bhc by BHC Korea, which Bhc then sublicenses to its franchisees in the United States. The document states that this license is in perpetuity. However, franchisees have no further rights to the marks upon the expiration or termination of their Master Franchise Agreement (MFA). Franchisees are not allowed to make any changes to the marks unless directed in writing by Bhc.
Bhc retains certain rights regarding the trademarks. Bhc can grant other licenses for the use of the marks, develop other systems using the marks, and engage in the production, distribution, and sale of products and services using the marks. The license granted to the franchisee is non-exclusive.
Prospective franchisees should understand that while the trademark license is initially perpetual, it is tied to the MFA. If the MFA expires or is terminated, the franchisee loses all rights to use the Bhc trademarks. Additionally, Bhc has the right to modify the system identified by the marks, including adopting new marks, products, equipment, or techniques, which franchisees must adopt. Franchisees also must notify Bhc of any known or suspected infringement of the marks and provide assistance in any related proceedings.