What is the Bhc Master Franchisee prohibited from doing without the Franchisor's written consent regarding the Marks and Intellectual Property?

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 in connection with any businesses or services other than the franchised Bhc restaurant business without the franchisor's express prior written permission. If permission is granted, these additional businesses or services will fall under the scope of the franchise agreement, making their revenues subject to royalty and marketing and promotion fees.

This restriction ensures that the Master Franchisee focuses on developing the Bhc franchised business and prevents them from diluting the brand by associating it with unrelated ventures without approval. It also allows Bhc to maintain control over its brand and ensure consistent quality and standards across all operations using its Marks and intellectual property.

This provision protects Bhc's brand identity and revenue streams, while also ensuring that the Master Franchisee adheres to the established business model. A prospective franchisee should carefully consider these limitations and understand the process for obtaining permission to expand into related businesses or services.