What technology system is required for operating a Bhc Master Franchise Business and Bhc Restaurants?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
more frequently than once every five years.
(6) Electronic Cash Registers and Computer Requirements
You must purchase and use a technology system necessary for the operation of your Master Franchise Business and in the Master Franchised BHC Restaurants, and ensure your Affiliate Franchisee your Subfranchisees purchase and use the specified Computer System for the Master Franchised BHC Restaurants we require (see section 8.4 of the MFA).
(i) The Computer System will generate reports on the sales and expenses of the BHC Restaurants, and it currently costs between $7,000 and $10,000.
- (ii) You, your Affiliate Franchisee, and your Subfranchisees will be solely responsible for the acquisition, operation, maintenance, and upgrading of the Computer System. Neither we, nor any affiliate or third party, is obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System.
- (iii) We currently do not require that you purchase a maintenance, repair, upgrade, or update service contract for the Computer System, but we reserve the right to do so in the future.
- (iv) The current annual cost of a service contract is approximately $4,000 to $10,000 per year. We reserve the right to change the point-of-sale cash register system and back-of-office computer at any time but will not require you to replace these items more than three times during the initial term of the MFA. We reserve the right to change the software each year. At such time as we designate the change or enhancement to the Computer System you, your Affiliate Franchisee, and your Subfranchisees may be required to make certain payments to us or our designated suppliers. You, your Affiliate Franchisee, and your Subfranchisees must install and commence using the changed or enhanced Computer System within such time as stated in our notice to you. You, your Affiliate Franchisee, and your Subfranchisees must acquire the right to use hardware, software, peripheral equipment, and accessories, and arrange for installation, maintenance, and support services of the initial, changed, or enhanced Computer System all at your cost. There are no contractual limitations on the frequency and cost of this obligation. We reserve the right to develop proprietary software.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, And Training (FDD pages 29–38)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees must purchase and use a technology system for their Master Franchise Business and Bhc Restaurants. This includes ensuring that Affiliate Franchisees and Subfranchisees also purchase and use the specified computer system. This computer system is designed to generate reports on the sales and expenses of the Bhc Restaurants. The estimated cost for this system currently ranges from $7,000 to $10,000.
Bhc franchisees, along with their Affiliate Franchisees and Subfranchisees, are solely responsible for the acquisition, operation, maintenance, and upgrading of the computer system. Bhc does not have any obligation to provide ongoing maintenance, repairs, upgrades, or updates for the computer system. Currently, Bhc does not require franchisees to purchase a maintenance, repair, upgrade, or update service contract for the computer system, but they reserve the right to mandate this in the future.
In addition to the computer system, franchisees must ensure their Affiliated Franchisee and Subfranchisee Restaurants report all data and information that Bhc designates, using the specified manner, including through Bhc's intranet or other online communications. Franchisees must also ensure their Affiliated Franchisee and Subfranchisees maintain a phone line and a separate modem dedicated for the sole use of allowing Bhc's computer system to interface and communicate with their Computer System. They may also need to purchase software designated by Bhc for this communication to occur. Furthermore, franchisees must ensure their BHC Restaurant is connected to the Internet using a connection method Bhc approves, which is currently DSL or Cable modem, and have a permanent Internet email account.
The costs associated with data storage, the phone line, modem, communication software, Internet access, the Internet email account, and all additional hardware and software needed to implement and maintain these services are the responsibility of the franchisee, their Affiliate Franchisee, and their Subfranchisees. This highlights the importance of budgeting not only for the initial cost of the computer system but also for the ongoing expenses related to its operation and maintenance, as well as the other required technology and communication infrastructure.