Does Bhc have the right to develop other systems using 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 right to use the trademarks. This means Bhc can grant licenses to others in addition to existing and future franchisees.
Specifically, Bhc retains the right 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 the franchisee. Bhc also 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, insignia, slogans, emblems, symbols, designs, and other identifying characteristics it may develop for that purpose.
This has significant implications for prospective franchisees. While franchisees are granted the right to use Bhc's trademarks, Bhc retains considerable control over those marks and can introduce new systems or products using the same marks without necessarily including existing franchisees. This could potentially lead to competition from other Bhc-branded ventures or dilute the brand's value for individual franchisees. Franchisees do not have exclusive rights to the marks and must acknowledge Bhc's ownership and rights to the marks.