Who is responsible for the acquisition, operation, maintenance, and upgrading of the Computer System for Bhc Restaurants?

According to Bhc's 2025 Franchise Disclosure Document, the franchisee, their Affiliate Franchisee, and their Subfranchisees are solely responsible for the acquisition, operation, maintenance, and upgrading of the Computer System used in the Master Franchised Bhc Restaurants. This includes all associated costs for hardware, software, peripherals, installation, maintenance, and support services. Bhc, its affiliates, or any third party are not obligated to provide any ongoing maintenance, repairs, upgrades, or updates for the Computer System.

The Computer System is essential for generating reports on sales and expenses for the Bhc Restaurants. The initial cost of the Computer System currently ranges from $7,000 to $10,000. Bhc retains the right to modify 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.

Bhc also reserves the right to change the software each year and may require franchisees, Affiliate Franchisees, and Subfranchisees to make payments to Bhc or its designated suppliers when changes or enhancements are made to the Computer System. Franchisees must install and begin using any changed or enhanced Computer System within the timeframe specified by Bhc. While Bhc does not currently mandate a service contract for the Computer System, they reserve the right to do so in the future. The current annual cost for a service contract is estimated to be between $4,000 and $10,000 per year.

Bhc may independently access the Computer System to retrieve, analyze, download, and use all software, data, and files stored or used on it. Franchisees must ensure that all designated data and information is reported as specified by Bhc, including through their intranet or other online communications. Franchisees must also maintain a dedicated phone line and modem for Bhc's computer system to interface with their Computer System and may need to purchase designated software for this purpose. Additionally, franchisees must have their Bhc Restaurant connected to the Internet via a connection method approved by Bhc, such as DSL or cable modem, and maintain a permanent Internet email account.