Does Bhc reserve the right to require franchisees to purchase a service contract for the Computer System in the future?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
rty, is obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System.
- (iii) We currently do not require that you purchase a maintenance, repair, upgrade, or update service contract for the Computer System, but we reserve the right to do so in the future.
- (iv) The current annual cost of a service contract is approximately $4,000 to $10,000 per year. We reserve the right to change the point-of-sale cash register system and back-of-office computer at any time but will not require you to replace these items more than three times during the initial term of the MFA. We reserve the right to change the software each year. At such time as we designate the change or enhancement to the Computer System you, your Affiliate Franchisee, and your Subfranchisees may be required to make certain payments to us or our designated suppliers. You, your Affiliate Franchisee, and your Subfranchisees must install and commence using the changed or enhanced Computer System within such time as stated in our notice to you. You, your Affiliate Franchisee, and your Subfranchisees must acquire the right to use hardware, software, peripheral equipment, and accessories, and arrange for installation,
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc does not currently mandate that franchisees purchase a service contract for the Computer System. However, Bhc retains the right to require franchisees to purchase a maintenance, repair, upgrade, or update service contract for the Computer System in the future.
The cost of a service contract is approximately $4,000 to $10,000 per year. Franchisees are responsible for the acquisition, operation, maintenance, and upgrading of the Computer System. Bhc, its affiliates, or third parties are not obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System.
Bhc also reserves the right to change the point-of-sale cash register system and back-of-office computer at any time, but will not require franchisees to replace these items more than three times during the initial term of the Master Franchise Agreement (MFA). Bhc reserves the right to change the software each year. Franchisees may be required to make certain payments to Bhc or its designated suppliers when changes or enhancements are made to the Computer System. Franchisees must install and commence using the changed or enhanced Computer System within the time frame stated in Bhc's notice.