What is the Bhc Master Franchisee required to do regarding employees' names, images, and likenesses for Franchisor's use?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The terms of this section 9.1(d) survive termination or expiration of this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must obtain a signed release from any employee who is not a Principal Equity Operator. This release, in the form provided in Bhc's Operations Manual, authorizes Bhc to use the employee's name, image, and likeness for commercial purposes related to marketing and promotion. The Master Franchisee must provide Bhc with a copy of this signed release.
This requirement allows Bhc to use the images and endorsements of the Master Franchisee's employees in their marketing efforts without having to compensate the employees directly. This could include using employee images in advertisements, on the company website, or in other promotional materials. The release ensures that Bhc has the legal right to use this content.
The terms of this agreement regarding the use of names, images, and likenesses survive the termination or expiration of the Master Franchise Agreement. This means that even after the franchise relationship ends, Bhc retains the right to continue using the employee's name, image, and likeness if a release was previously obtained. This is a standard practice in franchising to ensure brand consistency and marketing control.
Prospective Master Franchisees should carefully review the form of release in the Operations Manual to understand the full scope of rights being granted to Bhc. They should also ensure that their employees understand the implications of signing the release before they do so. This requirement applies only to employees who are not Principal Equity Operators, suggesting that different rules or agreements may apply to those with an ownership stake in the franchise.