Who is the owner that licenses the Bhc trademarks and service marks to the franchisor?

According to Bhc's 2025 Franchise Disclosure Document, the franchisor has a license from its affiliated entity that owns the rights to the Bhc trademarks and service marks. This "Owner" has authorized the franchisor to grant licenses to qualified candidates, allowing them to establish and operate franchised Bhc restaurants. These restaurants offer Korean-flavored fried chicken and related products and services under the Bhc trademarks.

For a prospective franchisee, this means that Bhc itself does not directly own the trademarks but licenses them from another entity. The franchisee's right to use the trademarks is dependent on Bhc's licensing agreement with the Owner. This arrangement is common in franchising, where a parent company or affiliated entity retains ownership of the intellectual property while granting usage rights to the franchisor and, subsequently, to franchisees.

It is important for a franchisee to understand that their use of the Bhc trademarks is a temporary, authorized use under the Franchise Agreement. The Owner of the marks retains all ownership interests, and both the franchisor and the Owner retain ownership of the goodwill generated by the marks. This underscores that the franchisee is building equity in a brand they do not own, which is typical in a franchise relationship. Franchisees must adhere to the standards and guidelines set by Bhc to maintain the integrity of the trademarks.

This arrangement also means that if the licensing agreement between Bhc and the Owner were to terminate, it could impact the franchisee's right to use the trademarks. Therefore, it is prudent for a prospective franchisee to inquire about the terms and stability of the licensing agreement between Bhc and the trademark owner to assess any potential risks.