After termination, cancellation, expiration, or assignment of the Bhc Franchise Agreement, does this relieve the franchisee of any obligations to Bhc existing at that time?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
15.2 Franchisor's Rights as Franchisor.
- (a) The termination, cancellation, expiration or assignment of this Agreement will be without prejudice to any of Franchisor's rights against Franchisee and such termination, cancellation, expiration or assignment will not relieve Franchisee of any of Franchisee's obligations to Franchisor existing at the time of termination, cancellation, expiration or assignment or terminate those obligations of Franchisor which, by their nature, survive the termination, cancellation, expiration or assignment of this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the termination, cancellation, expiration, or assignment of the Franchise Agreement does not relieve the franchisee of obligations to Bhc existing at that time. Specifically, any obligations of the franchisee to Bhc that exist at the time of termination, cancellation, expiration, or assignment remain in effect. Additionally, any obligations of Bhc that, by their nature, are meant to survive the termination, cancellation, expiration, or assignment of the agreement will continue to be in effect.
Upon termination, cancellation, or expiration of the agreement, the franchisee must immediately stop using or displaying Bhc's marks in any way that might suggest affiliation with Bhc. The franchisee must also contact online review sites and directories to remove any references to the former Bhc restaurant, including trademarks and reviews from the period the franchisee operated the business. Furthermore, the franchisee must return all proprietary materials to Bhc and cease using any confidential information or trade secrets acquired during the franchise relationship.
The franchisee is also required to remove all signs bearing Bhc's marks and discontinue any advertising that implies association with Bhc. If the franchisee engages in a similar business afterward, they must use trade names, service marks, and sign formats that are significantly different from those used under the Bhc franchise. Additionally, the franchisee must assign all telephone numbers and social media listings associated with the franchised Bhc restaurant to Bhc.
These post-termination obligations are fairly standard in franchising, designed to protect the brand's integrity and prevent confusion among customers. Prospective Bhc franchisees should carefully review these requirements to understand their responsibilities even after the franchise agreement ends.