Does Bhc retain the right to grant other licenses for the use of the marks?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
The license to use the Marks granted in the MFA is non-exclusive to you. We have and retain certain rights in the Marks including the following:
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- To grant other licenses for the use of the Marks in addition to those licenses already granted or to be granted to franchisees;
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- To develop and establish other systems using the Marks or other names or marks, and to grant licenses or franchises in those systems without providing any rights to you; and
- To engage, directly or indirectly, at wholesale, retail or otherwise, in (a) the production, distribution, license and sale of products and services, and (b) the use of the Marks and any and all trademarks, trade names, service marks, logos, insignia, slogans, emblems, symbols, designs and other identifying characteristics we may develop for that purpose.
Source: Item 13 — Trademarks (FDD pages 39–41)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc retains specific rights regarding the use of its trademarks. The franchise agreement grants franchisees a non-exclusive license to use Bhc's trademarks. This means that Bhc is not restricted from allowing other parties to use the same trademarks.
Bhc explicitly retains the right to grant additional licenses for the use of its marks to other franchisees or entities. Bhc also has the right to develop and establish other systems using the same marks or other names and marks, and to grant licenses or franchises in those systems without providing any rights to the existing franchisees. Furthermore, Bhc retains the right to engage directly or indirectly in the production, distribution, licensing, and sale of products and services, as well as the use of the marks and any trademarks, trade names, service marks, logos, and other identifying characteristics it may develop.
This arrangement means that a Bhc franchisee's rights to use the trademarks are not exclusive, and Bhc can authorize others to use them, potentially leading to increased competition or brand presence in the market. Prospective franchisees should be aware that Bhc has broad rights regarding the use of its trademarks and can expand its brand through various channels without necessarily benefiting existing franchisees.