What is the Bhc Master Franchisee's right to use Proprietary Information limited to?

According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee's right to use the Proprietary Information is specifically limited to the development and operation of a franchised Bhc restaurant during the term of the Master Franchise Agreement. Bhc retains ownership of all Proprietary Information, including trade secrets, and imparts this information to the Master Franchisee solely due to their special status within the Bhc system. This Proprietary Information is not generally known outside of Bhc's network.

The Master Franchisee acknowledges that they acquire no interest in the Proprietary Information beyond the right to use it for their Bhc restaurant. This means the Master Franchisee cannot use Bhc's Proprietary Information for any other business ventures or personal gain outside of the scope of their franchised Bhc restaurant. Bhc also restricts the Master Franchisee from using the franchisor's marks, operational techniques, service concepts, or Proprietary Information in connection with any businesses or services other than the franchised business conducted at the Bhc restaurant without express prior written permission from Bhc.

Upon termination or expiration of the Master Franchise Agreement, the Master Franchisee's right to use the Proprietary Information ceases. This is a standard practice in franchising, as the franchisor needs to protect its trade secrets and brand identity. The Master Franchisee also agrees not to contest the validity, distinctiveness, or enforceability of Bhc's marks or intellectual property during and after the term of the franchise. This ensures that the Master Franchisee cannot use the knowledge gained during the franchise term to compete against Bhc or undermine its brand.