What steps must a former Bhc franchisee take to ensure their employees observe post-termination obligations?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) permanently discontinue all advertising stating or implying Franchisee is associated or affiliated with Franchisor or the System (if Franchisee engages in any business thereafter, Franchisee must use trade names, service marks or trademarks that are significantly different from those under which 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 Franchisee's present and former employees, agents, officers, shareholders and partners observe the foregoing obligations); and
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a former franchisee must take necessary steps to ensure their present and former employees, agents, officers, shareholders, and partners observe post-termination obligations. Specifically, if a franchisee engages in any business after termination, they must use trade names, service marks, or trademarks that are significantly different from those under which they had previously conducted business.
Additionally, the franchisee must use sign formats that differ significantly in color and typeface from those used previously. These measures aim to prevent any confusion among customers and the public regarding the franchisee's affiliation with Bhc after the termination of the franchise agreement.
It is the franchisee's responsibility to communicate and enforce these post-termination obligations among all relevant parties associated with their former business operations to protect Bhc's brand and trademarks.