What is Bhc Master Franchisee prohibited from doing with Bhc's marks, operational techniques, service concepts, or proprietary information in connection with other businesses or services?

According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee is restricted from using Bhc's marks, operational techniques, service concepts, or proprietary information for any business or services other than the franchised Bhc restaurant business. This restriction is in place unless the Master Franchisee obtains express prior written permission from Bhc. If permission is granted, the additional businesses or services will fall under the scope of the franchised business, and revenues generated from them will be subject to royalty and marketing and promotion fees. This ensures that the Master Franchisee focuses on developing the Bhc business and does not divert resources or proprietary information to other ventures without proper authorization and compensation to Bhc.

Bhc retains all rights to market and sell Bhc products through other channels of distribution, including venues other than Bhc Restaurants, even within the Master Franchisee's territory. The Master Franchisee's rights are limited to operating the franchised business at the designated Bhc restaurant location, unless Bhc specifically allows the Master Franchisee to offer Bhc products elsewhere. All other rights, including the development of other systems involving similar or dissimilar services or goods under different trademarks, are reserved to Bhc.

During the term of the Master Franchise Agreement, the Master Franchisee is granted access to proprietary information, including trade secrets, and agrees to maintain the confidentiality of this information. The Master Franchisee acknowledges that Bhc is the sole owner of all proprietary information and that the Master Franchisee only has the right to use it for the development and operation of the Bhc Restaurant. The Master Franchisee cannot perform any action that would undermine Bhc's rights to the marks and must use them only as licensed and franchised under the agreement.

These restrictions and obligations are typical in franchising to protect the brand's integrity, maintain consistency across all franchise locations, and prevent franchisees from unfairly competing with the franchisor or diluting the brand's value. A prospective Bhc Master Franchisee should carefully consider these limitations and ensure they align with their business plans and capabilities.