Does Bhc own any patents, patent applications, or copyrights that are material to the franchise as of the date of the Disclosure Document?

According to Bhc's 2025 Franchise Disclosure Document, as of the date of the document, Bhc does not own any rights to patents, patent applications, or copyrights that are material to the franchise. However, Bhc does claim copyright protection for its Operations Manual and other publications and promotional materials, even though these materials have not been registered with the U.S. Copyright Office. Bhc considers these materials proprietary and confidential, and franchisees may only use them as outlined in the MFA, Operations Manual, and other communications from Bhc. Bhc retains the right to register any of its copyrighted materials at its discretion.

Furthermore, there are currently no effective determinations by the Copyright Office, United States Patent & Trademark Office, Board of Patent Appeals & Interferences, or any court, nor are there any pending infringement, opposition, or cancellation proceedings or any pending material litigation involving any patents or copyrights. Additionally, no agreements significantly limit Bhc's right to use or license the copyrighted materials, and Bhc is not obligated by any agreement to protect or defend any patent, trademark, or copyright. Bhc is also unaware of any superior prior rights or infringing uses that could materially affect a franchisee's use of the copyrights in the state where their franchise business will be located.

Bhc's Operations Manual and other materials contain confidential information, including site selection criteria, recipes, training and operations materials, methods, formats, specifications, standards, systems, procedures, food preparation techniques, sales and marketing techniques, knowledge, and experience used in developing and operating Bhc Restaurants, marketing and advertising programs, proprietary computer software or similar technology, knowledge of specifications for and suppliers of Approved Suppliers and other products and supplies, knowledge of the operating results and financial performance of Bhc Restaurants other than a Bhc Restaurant, and graphic designs and related intellectual property. All ideas, concepts, techniques, or materials concerning a Bhc Restaurant, whether protectable intellectual property and whether created by or for you or your owners or employees, must be promptly disclosed to us and will be deemed to be our sole and exclusive property, part of the system, and works made-for-hire for us. To the extent any item does not qualify as a "work made-for-hire" for us, you assign ownership of that item, and all related rights to that item, without compensation, to us and must take whatever action (including signing assignment or other documents) we request to show our ownership or to help us obtain intellectual property rights in the item. You may not use our confidential information in an unauthorized manner. You must take reasonable steps to prevent improper disclosure to others and use non-disclosure and noncompetition agreements with those having access. We may regulate the form of agreement that you use and will be a third-party beneficiary of that agreement with independent enforcement rights.