What responsibility does a Bhc franchisee have regarding the use of the Marks and Intellectual Property by its employees and agents?

According to Bhc's 2025 Franchise Disclosure Document, a franchisee is responsible for ensuring that their employees and agents properly use the Marks and Intellectual Property in compliance with the Franchise Agreement. This means the franchisee must supervise all employees and agents to prevent any unauthorized use or display of trademarks, trade names, service marks, insignias, or logo types other than the Marks approved by Bhc.

The franchisee must ensure that neither they, their Principal Equity Operators, nor any employee, agent, or representative uses or displays the Marks and Intellectual Property in connection with any business or activity outside the scope of the franchised Bhc Restaurant. The franchisee is also responsible for ensuring that any materials created by the franchisee, their employees, agents, or subcontractors that incorporate the Marks become the sole property of the owner of the Marks, including copyright and trademark rights. The franchisee must also have any affected employee who is not a Principal Equity Operator sign a release authorizing Bhc to use the employee's name, image, and likeness for marketing and promotion purposes.

This requirement places a significant supervisory burden on the Bhc franchisee. They must actively monitor and control how their staff uses Bhc's branding to protect the integrity of the Marks. Failure to adequately supervise employees and agents could result in a breach of the Franchise Agreement, potentially leading to penalties or termination of the franchise. This is a common requirement in franchising, as franchisors need to protect their brand identity and ensure consistent quality across all franchise locations.