What responsibility does a Bhc franchisee have regarding the use of Marks and Intellectual Property by their employees and agents?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ss or other activity that is outside the scope of the Franchised Business. Master Franchisee may only use the Marks and Intellectual Property on the Internet or other electronic media in the manner and as specifically authorized by Franchisor in the Operations Manual or otherwise in writing. Master Franchisee agrees to be responsible for and supervise all its employees and agents to insure the proper use of the Marks and Intellectual Property in compliance with this Agreement.
- (b) Master Franchisee acknowledges and agrees (i) Master Franchisee's use of the Marks and Intellectual Property is a temporary authorized use under this Agreement, (ii) the Owner of the Marks retains all ownership interests in the Marks, and (iii) Franchisor and the Owner of the Marks retain all ownership of the goodwill generated by the Marks. Master Franchisee acknowledges that the use of the Marks outside the scope of the terms of this Agreement without Franchisor's written consent is an infringement of the Owner of the Marks' and Franchisor's exclusive right, title, and interest in and to the Marks and Intellectual Property. Master Franchisee agrees that as between Master Franchisee and Franchisor, all rights to use the Marks and Intellectual Property within the franchised System are Franchisor's exclusive property. Master Franchisee now asserts no claim and will hereafter assert no claim to any goodwill, reputation, or ownership thereof because of Master Franchisee's use thereof or otherwise. It is expressly understood and agreed that ownership and title of the Trade Dress, Operations Manual and Franchisor's other manuals, bulletins, instruction sheets, forms, methods of operation and goodwill are and, as between Master Franchisee and Franchisor, remain vested solely in Franchisor, and the use thereof is only co-extensive with the term of this Agreement.
- (c) Master Franchisee agrees that during the term of the Franchise, and after any assignment, expiration or termination of the Franchise, Master Franchisee will not, directly or indirectly, commit an act of infringement or contest or aid others in contesting the validity, distinctiveness, secondary meaning, ownership or enforceability of the Marks or Intellectual Property, or take any other action in derogation of the Marks or Intellectual Property, and that no monetary amount will be assigned as attributable to any goodwill associated with Master Franchisee's use of the System, the Marks or Intellectual Property.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee is responsible for ensuring that their employees and agents properly use the brand's Marks and Intellectual Property. This means the franchisee must supervise their staff to guarantee compliance with the franchise agreement.
The franchise agreement specifies that neither the franchisee, any principal equity operator, nor any employee, agent, or representative can use, display, or permit the use or display of trademarks, trade names, service marks, insignias, or logo types other than the Marks approved by Bhc. They also cannot use the Marks and Intellectual Property in connection with any business or activity outside the scope of the franchised business. The franchisee can only use the Marks and Intellectual Property on the Internet or other electronic media as specifically authorized by Bhc in the Operations Manual or in writing.
This requirement ensures brand consistency and protects Bhc's intellectual property rights. It is a standard practice in franchising to hold franchisees accountable for the actions of their employees and agents regarding brand standards and intellectual property. Franchisees should implement training programs and monitoring procedures to ensure compliance and avoid potential breaches of the franchise agreement.