What rights does the Master Franchisee acquire in the Proprietary Information disclosed to them by Bhc?

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

The Master 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 Master Franchise Agreement. This means the Master Franchisee cannot use this information for any other business ventures or disclose it to third parties. Upon termination of the agreement, all rights to use the Proprietary Information cease.

This arrangement is typical in franchising, where the franchisor carefully guards its trade secrets and operational methods. The restrictions ensure that the Master Franchisee does not exploit Bhc's confidential information for their own benefit outside the scope of the franchise agreement, either during the agreement term or after its termination. This protects Bhc's competitive advantage and the integrity of its brand.