Will any monetary amount be assigned to goodwill associated with the franchisee's use of the Bhc system?

According to Bhc's 2025 Franchise Disclosure Document, no monetary amount will be assigned to the goodwill associated with a franchisee's use of the Bhc system, marks, or intellectual property. This applies both during the term of the franchise agreement and after its assignment, expiration, or termination. This means that upon termination of the franchise agreement, the franchisee will not receive any compensation for the goodwill they may have built up in their Bhc business.

This provision protects Bhc's ownership of its brand and system. Goodwill, which represents the value and reputation of the brand, is considered the sole property of Bhc. By explicitly stating that no monetary amount will be assigned to the franchisee's use of the system, Bhc ensures that it retains all financial benefits associated with the brand's reputation.

For a prospective franchisee, this means that the value of their Bhc franchise is largely tied to the ongoing operation of the business under the franchise agreement. While a franchisee can build a successful business, the goodwill generated through their efforts ultimately benefits Bhc. This is a common arrangement in franchising, as it reinforces the franchisor's control over the brand and ensures consistency across all franchise locations.