How often does Bhc anticipate requiring Master Franchisees or Sublicensees to update the Trade Dress used at Bhc Restaurants?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisor may periodically require Master Franchisee or Sublicensees to update the Trade Dress used at the BHC Restaurant. Such updates will be contained in the Operations Manual or otherwise provided to Master Franchisee in writing. Such updates may require Master Franchisee and Sublicensees to install new color schemes, logos, signage, or other visual elements. Franchisor anticipates that such Trade Dress updates will be required no more frequently than once every five years.
- (c) Master Franchisee and Subfranchisees will always be required to make upgrades and refurbishments to the BHC Restaurant before renewing the Franchise pursuant to section 5.2(f) of this Agreement. Otherwise, Franchisor will only require the types of modifications and expenditures described in sections 8.5(a) and 8.5(b) if Franchisor makes a good faith determination that the BHC Restaurant is substantially inconsistent with prevailing System-wide standards (including the Trade Dress, safety issues regarding customers and employees, the overall condition of the BHC Restaurant, or the type, quality or condition of the equipment needed to adequately prepare, promote and sell BHC Products) and that, as a result of its appearance or condition, the BHC Restaurant is either (i) not adequately positioned to promote and sell BHC Products as then required or (ii) damaging the integrity of the BHC image, brand or Marks.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc anticipates requiring Master Franchisees or Sublicensees to update the Trade Dress used at Bhc Restaurants no more frequently than once every five years. These updates, which will be provided in writing or contained in the Operations Manual, may include installing new color schemes, logos, signage, or other visual elements.
In addition to these periodic updates, Master Franchisees and Subfranchisees are always required to make upgrades and refurbishments to the Bhc Restaurant before renewing their Franchise Agreement. Outside of the renewal requirement, Bhc will only mandate modifications and expenditures if it determines in good faith that a Bhc Restaurant is substantially inconsistent with system-wide standards. This inconsistency could relate to Trade Dress, safety issues, the overall condition of the restaurant, or the type, quality, or condition of the equipment used to prepare and sell Bhc products.
This policy ensures that all Bhc locations maintain a consistent brand image and meet current standards. For prospective franchisees, this means budgeting for potential updates every five years, as well as necessary upgrades before franchise renewal. It also highlights the importance of maintaining the restaurant in accordance with Bhc's system-wide standards to avoid additional required modifications.