Is Bhc obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
more frequently than once every five years.
(6) Electronic Cash Registers and Computer Requirements
You must purchase and use a technology system necessary for the operation of your Master Franchise Business and in the Master Franchised BHC Restaurants, and ensure your Affiliate Franchisee your Subfranchisees purchase and use the specified Computer System for the Master Franchised BHC Restaurants we require (see section 8.4 of the MFA).
(i) The Computer System will generate reports on the sales and expenses of the BHC Restaurants, and it currently costs between $7,000 and $10,000.
- (ii) You, your Affiliate Franchisee, and your Subfranchisees will be solely responsible for the acquisition, operation, maintenance, and upgrading of the Computer System. Neither we, nor any affiliate or third party, is obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System.
- (iii) We currently do not require that you purchase a maintenance, repair, upgr
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc is not obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System. The franchisee, their Affiliate Franchisee, and Subfranchisees are solely responsible for the acquisition, operation, maintenance, and upgrading of the Computer System. This includes all costs associated with hardware, software, peripheral equipment, accessories, installation, maintenance, and support services for the Computer System.
While Bhc does not currently require a service contract for the Computer System, they reserve the right to do so in the future. The current annual cost of a service contract is estimated to be approximately $4,000 to $10,000 per year. Bhc also reserves the right to change the point-of-sale cash register system and back-of-office computer at any time, but will not require franchisees to replace these items more than three times during the initial term of the Master Franchise Agreement (MFA). They also reserve the right to change the software each year.
Bhc may independently access the Computer System to retrieve, analyze, download, and use all software, data, and files stored or used on it. Franchisees must ensure that their restaurants connect to the internet using a method approved by Bhc, such as DSL or Cable modem, and maintain a permanent internet email account. The costs associated with data storage, phone lines, modems, communication software, internet access, and email accounts are the responsibility of the franchisee, Affiliate Franchisee, and Subfranchisees.
Bhc may require franchisees, Affiliate Franchisees, and Subfranchisees to make certain payments to them or their designated suppliers when changes or enhancements are made to the Computer System. Franchisees must install and begin using the changed or enhanced Computer System within the timeframe specified in Bhc's notice. There are no contractual limitations on the frequency and cost of this obligation. Bhc also reserves the right to develop proprietary software, which franchisees may be required to license from Bhc, an affiliate, or a third party, potentially incurring software licensing or use fees.