What rights does a Bhc franchisee acquire in the Proprietary Information disclosed to them?

According to Bhc's 2025 Franchise Disclosure Document, a franchisee acquires limited rights regarding the proprietary information disclosed to them. Bhc retains sole ownership of all proprietary information, including trade secrets. The franchisee's access to this information is solely due to their status as a franchisee within the Bhc system. This proprietary information is not generally known outside of Bhc's network.

The franchisee's rights are specifically limited to using the proprietary information for the development and operation of their franchised Bhc restaurant during the term of the Franchise Agreement. This means the franchisee cannot use this information for any other business ventures or purposes outside of their Bhc franchise.

Upon termination of the Franchise Agreement, the franchisee's right to use the proprietary information immediately ceases. Furthermore, franchisees are obligated to maintain the confidentiality of the Operations Manual and other proprietary information, preventing unauthorized duplication, distribution, or disclosure to third parties. This obligation extends both during and after the term of the Franchise Agreement. These restrictions are typical in franchising to protect the brand's competitive advantage and trade secrets.