factual

Is Bhc obligated to establish and maintain an Intranet for franchisees?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

8.13 Intranet.

  • (a) Franchisor may, at its option, establish and maintain an "Intranet" through which (i) BHC franchisees may communicate with each other, (ii) Franchisor and Franchisee may communicate with each other and (iii) Franchisor may disseminate the Operations Manual, updates thereto and other confidential information. Franchisor has full discretion and control over all aspects of any such Intranet, including the content and functionality thereof. Franchisor will have no obligation to maintain the Intranet indefinitely and may dismantle it at any time without liability to Franchisee.
  • (b) If establishes an Intranet, Franchisee must use it in strict compliance with the standards and specifications, protocols and restrictions Franchisor establishes regarding such use. Such standards and specifications, protocols and restrictions may provide, restrict or otherwise relate to (i) the use of abusive, slanderous or otherwise offensive language in electronic communications, (ii) communications between or among BHC franchisees that disparage Franchisor or endorse or encourage breach of any BHC franchise agreement, or other agreement with Franchisor or Franchisor's affiliates, (iii) confidential treatment of materials that Franchisor transmits via the Intranet, (iv) password protocols and other security precautions, including limitations on the number and types of employees who may be granted access to the Intranet, (v) grounds and procedures for Franchisor's suspending or revoking a BHC

franchisee's access to the Intranet, and (vi) a privacy policy governing Franchisor's access to and use of electronic communications that franchisees post to the Intranet. Franchisee acknowledges that, as administrator of the Intranet, Franchisor can access and view any communication that any person posts on the Intranet. Franchisee further acknowledges that the Intranet facility and all communications posted to it are Franchisor's property, free of any claims of privacy or privilege that Franchisee or any other person may assert.

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, Bhc is not obligated to establish and maintain an Intranet for franchisees. Bhc may choose to establish and maintain an Intranet, but it is at their discretion.

If Bhc establishes an Intranet, it would allow Bhc franchisees to communicate with each other, Bhc and the franchisee to communicate with each other, and Bhc to share the Operations Manual, updates, and other confidential information. Bhc has full control over the Intranet's content and functionality and can dismantle it at any time without liability to the franchisee.

If Bhc does establish an Intranet, franchisees must use it according to Bhc's standards, specifications, protocols, and restrictions. These standards may relate to language used in communications, disparagement of Bhc, confidential treatment of materials, password protocols, access limitations, grounds for suspending or revoking access, and a privacy policy. Bhc, as the Intranet administrator, can access and view any communication posted on the Intranet, and all communications are Bhc's property.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.