Who is responsible for the acquisition, operation, maintenance, and upgrading of the Computer System for a Bhc franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
s on the sales and expenses of the BHC Restaurants, and it currently costs between $7,000 and $10,000.
- (ii) You, your Affiliate Franchisee, and your Subfranchisees will be solely responsible for the acquisition, operation, maintenance, and upgrading of the Computer System. Neither we, nor any affiliate or third party, 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, maintenance, and support services of the initial, changed, or enhanced Computer System all at your cost. There are no contractual limitations on the frequency and cost of this obligation.
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, 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 hardware, software, peripheral equipment, and accessories. Bhc is not obligated to provide any maintenance, repairs, upgrades, or updates for the Computer System.
This means that a prospective Bhc franchisee must factor in the costs associated with not only purchasing the initial computer system, which currently costs between $7,000 and $10,000, but also the ongoing expenses of keeping it running and up-to-date. While Bhc does not currently require a service contract, they reserve the right to do so in the future. The current annual cost of a service contract is approximately $4,000 to $10,000 per year.
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. Furthermore, Bhc can change the software each year. Franchisees may be required to make payments to Bhc or their designated suppliers at the time of any changes or enhancements to the Computer System and must install and begin using the updated system within the timeframe specified by Bhc. These changes can occur with no contractual limitations on frequency and cost.
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 in the manner specified by Bhc, including through their intranet or other online communications. The data storage, phone line, modem, communication software, Internet access, and Internet email account, along with all additional hardware and software needed to implement and maintain these services, are at the franchisee's cost.