What specific actions regarding the business premises are required of the Master Franchisee after termination of the Bhc Master Franchise Agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
pes, videodiscs, forms, advertising matter, devices, insignias, slogans or designs used from time to time in connection with the Franchised Business.
(b) If there is a termination, cancellation or expiration as described in section 15.1(a) above, Master Franchisee must comply with section 11.2 of this Agreement respecting post-termination competition and also promptly:
(i) remove at Master Franchisee's expense all signs erected or used by Master Franchisee and bearing the Marks, or any word or mark indicating that Master Franchisee is associated or affiliated with Franchisor;
(ii) erase or obliterate from letterheads, stationery, printed matter, advertising, or other forms used by Master Franchisee the Marks and all words indicating that Master Franchisee is associated or affiliated with Franchisor;
(iii) permanently discontinue all advertising stating or implying Master Franchisee is associated or affiliated with Franchisor or the System (if Master Franchisee engages in any business thereafter, Master Franchisee must use trade names, service marks or trademarks that are significantly different from those under which Master Franchisee had done business and must use sign formats that are significantly different in color and type face; and take all necessary steps to ensure that Master Franchisee's present and former employees, agents, officers, shareholders and partners observe the foregoing obligations); and
(iv) assign all interest and right to use all telephone numbers and all telephone and social media listings applicable to the BHC Restaurant in use at the time of such termination to Franchisor and take all actions necessary to change all such telephone numbers immediately and change all such telephone and social media listings as soon as possible.
(v) pay to the Franchisor all Royalties, other fees, and any and all amounts or accounts payable then owed the Franchisor or its affiliates pursuant to this Agreement, or pursuant to any other agreement, whether written or oral, including subleases and lease assignments, between the parties.
(c) If Master Franchisee fails or omits to make or cause to be made any removal or change described in section 15.1(b)(i) – (v) above, then Franchisor will have the right within 15 days after written notice to enter Master Franchised BHC Restaurant or other premises from which the Franchised Business is being conducted without being deemed guilty of trespass or any other tort, and make or cause to be made such removal and changes at Master Franchisee's expense, which expenses Master Franchisee agrees to pay to Franchisor promptly upon demand. Effective on the Termination Date, Master Franchisee hereby irrevocably appoints Franchisor as Master Franchisee's lawful attorney upon termination of this Agreement with authority to file any document in the name of and on Franchisor's behalf for the purpose of terminating any and all of Master Franchisee's rights in any trade name Master Franchisee have used containing any of the Marks.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, upon termination of the Master Franchise Agreement, the Master Franchisee has several obligations regarding the business premises. The Master Franchisee is responsible for removing, at their own expense, all signs bearing Bhc's marks or any indication of affiliation with Bhc. They must also erase or obliterate Bhc's marks from all letterheads, stationery, printed materials, and advertising.
Furthermore, the Master Franchisee must permanently discontinue all advertising implying association with Bhc, ensuring that any subsequent business uses significantly different trade names, service marks, trademarks, and sign formats. They are also required to assign all telephone numbers and social media listings associated with the Bhc Restaurant to Bhc and take necessary actions to change them.
If the Master Franchisee fails to comply with these requirements, Bhc has the right to enter the premises after 15 days' written notice and make the necessary removals and changes at the Master Franchisee's expense. These expenses must be promptly paid by the Master Franchisee to Bhc upon demand. Additionally, the lease agreement between the Master Franchisee and the landlord may include an addendum that grants Bhc the right to assume the lease and requires the landlord to cooperate with Bhc in de-identifying the restaurant if the agreement is terminated and Bhc does not assume the lease.