Is Bhc required to compensate the franchisee for using their name, image, and likeness for commercial purposes?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Franchisee hereby grants Franchisor the right at any time to use the name, image and likeness of Franchisee and all Principal Equity Operators for commercial purposes in connection with the marketing and promotion of the Marks, Franchisor's Intellectual Property, BHC Products, any BHC business location and the System, without any form of compensation or remuneration.
Franchisee also agrees (i) to have any affected employee of Franchisee who is not a Principal Equity Operator sign a release in the form contained in the Operations Manual authorizing Franchisor to also use the employee's name, image and likeness for the purposes described in this section 9.1(d), without compensation or remuneration, and (ii) to provide Franchisor with a copy of such signed release.
The terms of this section 9.1(d) survive termination or expiration of this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc has the right to use the name, image, and likeness of the franchisee and all Principal Equity Operators for commercial purposes without providing any compensation or remuneration. This extends to marketing and promotion related to the Marks, Bhc's Intellectual Property, BHC Products, any BHC business location, and the System. This policy remains in effect even after the termination or expiration of the franchise agreement.
This means that as a Bhc franchisee, you and your Principal Equity Operators could be featured in Bhc's advertising or promotional materials without receiving any direct payment or other form of compensation. This is a significant point to consider, as the commercial use of your image could potentially generate revenue for Bhc, from which you would not directly benefit.
Furthermore, Bhc requires franchisees to obtain a signed release from any affected employee who is not a Principal Equity Operator, allowing Bhc to use their name, image, and likeness for similar commercial purposes without compensation. Franchisees are responsible for providing Bhc with a copy of this release. This obligation ensures Bhc has broad rights to use the likeness of individuals associated with the franchise for marketing and promotional activities without incurring additional costs.
While it is common for franchisors to use franchisee testimonials and success stories in their marketing, the explicit waiver of compensation for the use of name, image, and likeness is something prospective franchisees should carefully consider. It is important to understand the extent to which Bhc might use your or your employees' images and how this aligns with your expectations regarding personal publicity and compensation.