After termination of a Bhc franchise, what impression must the franchisee avoid giving to the public?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) In the event of termination, cancellation or expiration of this Agreement whether by reason of Franchisee's breach, default, non-renewal, lapse of time or other cause, in addition to any other
obligations provided for in this Agreement, Franchisee must forthwith discontinue the use or display of the Marks in any manner whatsoever, and Franchisee may not thereafter operate or do business under the Marks or any other BHC brand or any other name or in any manner that might tend to give the general public the impression that Franchisee is in any way associated or affiliated with Franchisor, or any of the businesses conducted by Franchisor or the Owner of the Marks, including without limitation repainting the business premises in a distinctively different color and removing or rearranging distinctive elements of the Trade Dress. Franchisee must contact online review sites and other online directories and websites which have made reference to Franchisee's Franchised BHC Restaurant during the 18 months prior to the date this Agreement terminates, is cancelled, or expires, and request the removal of all use of the trademarks in connection with the former BHC Franchised BHC Restaurant (and the physical address of the former Franchised BHC Restaurant) and all use of former reviews from the period Franchisee was a BHC franchisee. And, Franchisee also must comply with section 15.2 respecting the return to Franchisor of certain materials and must not thereafter use, in any manner, or for any purpose, directly or indirectly, any of the Proprietary Information, Trade Secrets, procedures, techniques, or materials acquired by Franchisee by virtue of the relationship established by this Agreement, including, without limitation, (i) any training or other materials, manuals, bulletins, instruction sheets, or supplements thereto, or (ii) any equipment, videotapes, videodiscs, forms, advertising matter, devices, insignias, slogans or designs used from time to time in connection with the Franchised Business.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, after the termination, cancellation, or expiration of the Franchise Agreement, the franchisee must not operate in any manner that might lead the public to believe they are still associated or affiliated with Bhc. This includes any of the businesses conducted by Bhc or the owner of the marks.
To prevent this impression, the franchisee is obligated to discontinue using or displaying Bhc's marks. This extends to actions such as repainting the business premises in a distinctively different color and altering the trade dress to clearly differentiate the business from Bhc. The franchisee must also contact online review sites and directories to request the removal of all trademarks and reviews related to the former Bhc restaurant.
Furthermore, the franchisee is prohibited from using any of Bhc's proprietary information, trade secrets, procedures, techniques, or materials acquired during the franchise relationship. This includes training materials, manuals, equipment, and advertising materials. The franchisee must also remove all signs bearing Bhc's marks and discontinue any advertising that implies an association with Bhc. If the franchisee continues in a similar business, they must use trade names and sign formats that are significantly different from those used under the Bhc franchise.