After termination of a Bhc franchise, who is responsible for the expense of removing signs bearing the Marks?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If there is a termination, cancellation or expiration as described in section 15.1(a) above, Franchisee must comply with section 11.2 of this Agreement respecting post-termination competition and also promptly:
- (i) remove at Franchisee's expense all signs erected or used by Franchisee and bearing the Marks, or any word or mark indicating that Franchisee is associated or affiliated with Franchisor;
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisee is responsible for the expense of removing signs bearing the Marks after termination, cancellation, or expiration of the franchise agreement. Specifically, the franchisee must remove, at their own expense, all signs erected or used by them that bear Bhc's Marks or indicate affiliation with Bhc. This obligation is triggered by any termination, cancellation, or expiration of the franchise agreement, regardless of the reason.
In addition to removing the signs, the franchisee must also erase or obliterate Bhc's Marks from letterheads, stationery, printed matter, advertising, and other forms they use. They must also permanently discontinue any advertising that implies association with Bhc. If the franchisee continues in a similar business, they must use trade names, service marks, and trademarks that are significantly different from those used under the Bhc franchise.
If the franchisee fails to remove the signs and other materials as required, Bhc has the right to enter the former franchise location and make the removals and changes themselves. The franchisee will be responsible for paying Bhc for all expenses incurred in doing so. This ensures that Bhc can protect its brand and trademarks even if the franchisee does not comply with the post-termination obligations. This is a fairly standard clause in most franchise agreements, as franchisors need to protect their brand identity after a franchise ceases operation.