Does Bhc reserve the right to grant additional licenses for the use of its trademarks beyond those granted to franchisees?

According to Bhc's 2025 Franchise Disclosure Document, Bhc retains specific rights regarding the use of its trademarks. The franchise agreement grants franchisees a non-exclusive right to use Bhc's trademarks. This means that while franchisees are permitted to use the trademarks within the scope of their franchise agreement, they do not have exclusive control over them. Bhc retains the right to use the trademarks themselves and to allow others to use them as well.

Bhc explicitly reserves the right to grant additional licenses for the use of the trademarks to other parties, beyond those already granted or intended to be granted to franchisees. Bhc can also develop and establish other systems that utilize the trademarks, or other names and marks, and then grant licenses or franchises for these systems without providing any rights to existing franchisees. Furthermore, Bhc retains the right to engage directly or indirectly in the production, distribution, licensing, and sale of products and services, using the trademarks and any other identifying characteristics they develop.

This has significant implications for prospective Bhc franchisees. The franchisee's license to use Bhc's trademarks is non-exclusive, meaning Bhc can license the trademarks to others, potentially creating competition. Bhc could also create entirely new systems using the same trademarks, without giving the franchisee any rights in those new systems. Therefore, franchisees should be aware that their rights to the trademarks are limited and subject to Bhc's discretion.