Is the Bhc master franchisee compensated for the franchisor's use of their name, image, and likeness?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Master Franchisee hereby grants Franchisor the right at any time to use the name, image and likeness of Master Franchisee and all Principal Equity Operators for commercial purposes in connection with the marketing and promotion of the Marks, Franchisor's Intellectual Property, BHC Products, any BHC business location and the System, without any form of compensation or remuneration.
Master Franchisee also agrees (i) to have any affected employee of Master Franchisee who is not a Principal Equity Operator sign a release in the form contained in the Operations Manual authorizing Franchisor to also use the employee's name, image and likeness for the purposes described in this section 9.1(d), without compensation or remuneration, and (ii) to provide Franchisor with a copy of such signed release.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the master franchisee grants Bhc the right to use their name, image, and likeness for commercial purposes, such as marketing and promotion, without any compensation or remuneration. This extends to all Principal Equity Operators associated with the master franchisee.
This means that Bhc can use the master franchisee's and their Principal Equity Operators' identities to promote the brand, products, or specific locations without having to pay them for it. This is a condition that remains in effect throughout the term of the franchise agreement.
This lack of compensation for the use of name, image, and likeness is a potentially important consideration for prospective master franchisees. While it allows Bhc to market the franchise more effectively, it also means the master franchisee and their principals will not receive direct financial benefit from these promotional activities. It is fairly common in franchising for the franchisor to retain rights to use franchisee likeness for promotional purposes, but the specific terms regarding compensation can vary.
In addition, any employee of the Master Franchisee who is not a Principal Equity Operator must sign a release authorizing Bhc to use their name, image, and likeness for the same purposes, without compensation. The master franchisee is responsible for providing Bhc with a copy of this signed release.