Is a Bhc Master Franchisee required to maintain an annual maintenance agreement for the Computer System?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Master Franchisee must, and ensure Subfranchisees, purchase, use, and maintain the computerized point of sale cash collection system and integrated business computer (including all related hardware and software) as specified in the Operations Manual or otherwise by Franchisor in writing for use at the BHC Restaurant (the "Computer System"). The Computer System must always be powered on and connected to a dedicated high-speed communications medium specified by Franchisor, capable of accessing the Internet for the purpose of implementing software, transmitting, and receiving data, accessing the Internet in the manner designated by Franchisor in the Operations Manual or otherwise in writing. Master Franchisee must obtain and maintain an annual maintenance agreement with the manufacturer or distributor of the Computer System. The Computer System must be electronically linked to Franchisor. Franchisor may electronically access the Computer System and any of Master Franchisee's and Subfranchisees' Internet domain names or email addresses on a daily or other basis at such times and in such manner as determined by Franchisor, with or without notice, to retrieve such transaction information including sales, sales mix, usage, and other operations data as Franchisor deems appropriate. Master Franchisee must ensure that only adequately trained employees and Subfranchisees conduct transactions using the Computer System. Within a reasonable time upon Franchisor's request, Master Franchisee must apply for, and ensure the Subfranchisees apply for, and maintain debit cards, credit cards or other non-cash systems existing or developed in the future to enable customers to purchase BHC Products via such procedure, as specified by Franchisor. Franchisor may require Master Franchisee to update, upgrade or replace the Computer System, including hardware or software, periodically upon written notice. The Computer System must also be configured and enabled to send daily and weekly sales reports to the email address provided by Franchisor.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee is required to maintain an annual maintenance agreement for the Computer System. Specifically, the Master Franchisee must obtain and maintain an annual maintenance agreement with the manufacturer or distributor of the Computer System. This requirement extends to ensuring that their Subfranchisees also adhere to this maintenance agreement.
This stipulation ensures that the computerized point of sale cash collection system and integrated business computer, which are crucial for the operation of a Bhc restaurant, remain functional and up-to-date. The Computer System must always be powered on and connected to a dedicated high-speed communications medium specified by Bhc, capable of accessing the Internet for the purpose of implementing software, transmitting, and receiving data. This connectivity is essential as the Computer System must be electronically linked to Bhc, allowing Bhc to access the system for transaction information, sales data, and other operational details.
The cost of the annual maintenance agreement is not specified in the FDD, and may vary depending on the manufacturer or distributor of the Computer System. It is important for prospective Master Franchisees to factor in this ongoing expense when evaluating the financial feasibility of the franchise. Additionally, Master Franchisees are responsible for ensuring that only adequately trained employees and Subfranchisees conduct transactions using the Computer System, highlighting the importance of proper training and operational oversight.