Does the Bhc Master Franchisee's obligation to allow use of name/image/likeness survive termination of the agreement?
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, the Master Franchisee's obligation to allow the use of their employee's name, image, and likeness survives the termination or expiration of the agreement. Specifically, the Master Franchisee agrees to have any affected employee who is not a Principal Equity Operator sign a release authorizing Bhc to use the employee's name, image, and likeness without compensation. This authorization extends beyond the term of the agreement.
This means that even after the Master Franchise Agreement ends, Bhc retains the right to use the name, image, and likeness of the Master Franchisee's former employees who signed the release. This could be for marketing, training, or other purposes deemed appropriate by Bhc. The Master Franchisee is also obligated to provide Bhc with a copy of the signed release from each employee.
This provision ensures that Bhc maintains control over its brand representation and has the necessary rights to utilize employee likenesses even after a franchise relationship concludes. It is important for prospective Master Franchisees to understand this obligation and ensure that their employees are aware of and consent to this condition before signing the release. This is a fairly standard practice in franchising, as it allows the franchisor to maintain consistency in marketing and training materials.