What steps must a Bhc Master 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 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
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must take specific steps to ensure their present and former employees, agents, officers, shareholders, and partners observe post-termination obligations. These steps are required if the franchise agreement is terminated, canceled, or expires.
Specifically, the Master Franchisee must ensure that if they engage in any business after the termination of the franchise agreement, they must use trade names, service marks, or trademarks that are significantly different from those under which they had previously conducted business. Additionally, they must use sign formats that are significantly different in color and typeface.
These measures aim to prevent confusion among customers and to protect Bhc's brand identity and goodwill after the termination of the franchise agreement. The Master Franchisee bears the responsibility of enforcing these obligations among their personnel to avoid any potential legal or financial repercussions for non-compliance.