What are the reasons for termination, cancellation, or expiration of the Bhc Master Franchise Agreement that trigger the obligations described in section 15.1(a)?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) In the event of termination, cancellation or expiration of this Agreement whether by reason of Master Franchisee's breach, default, non-renewal, lapse of time or other cause, in addition to any other obligations provided for in this Agreement, Master Franchisee must forthwith discontinue the use or display of the Marks in any manner whatsoever, and Master Franchisee may not thereafter operate or do business under the Marks or any other BHC brand or any other name or in any manner that might tend to give the general public the impression that Master Franchisee is in any way associated or affiliated with Franchisor, or any of the businesses conducted by Franchisor or the Owner of the Marks, including without limitation repainting the business premises in a distinctively different color and removing or rearranging distinctive elements of the Trade Dress. Master Franchisee must contact online review sites and other online directories and websites which have made reference to Master Franchised BHC Restaurant during the 18 months prior to the date this Agreement terminates, is cancelled, or expires, and request the removal of all use of the trademarks in connection with the former BHC franchised BHC Restaurant (and the physical address of the former BHC Restaurant) and all use of former reviews from the period Master Franchisee was a BHC Master Franchisee. And, Master Franchisee also must comply with section 15.2 respecting the return to Franchisor of certain materials and must not thereafter use, in any manner, or for any purpose, directly or indirectly, any of the Proprietary Information, Trade Secrets, procedures, techniques, or materials acquired by Master Franchisee by virtue of the relationship established by this Agreement, including, without limitation, (i) any training or other materials, manuals, bulletins, instruction sheets, or supplements thereto, or (ii) any equipment, videotapes, videodiscs, forms, advertising matter, devices, insignias, slogans or designs used from time to time in connection with the Franchised Business.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, section 15.1(a) outlines the Master Franchisee's obligations upon termination, cancellation, or expiration of the Master Franchise Agreement. These obligations are triggered regardless of the reason for the termination, cancellation, or expiration.
The reasons include the Master Franchisee's breach of the agreement, default, non-renewal of the agreement, the lapse of time, or any other cause. This means that no matter the circumstances leading to the end of the agreement, the Master Franchisee must comply with the stipulations in section 15.1(a).
These obligations include immediately discontinuing the use of Bhc's marks, refraining from operating under the Bhc brand or any similar name that could imply association with Bhc, and taking steps to inform online platforms to remove any references to the former Bhc franchise. The Master Franchisee must also return certain materials to Bhc and cease using any proprietary information or trade secrets acquired during the franchise relationship. This ensures a clean break between Bhc and the former Master Franchisee, protecting Bhc's brand and proprietary assets.