After termination of the Bhc Master Franchise Agreement, can the Master Franchisee operate under any other Bhc brand?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) In the event of termination, cancellation or expiration of this Agreement whether by reason of Master Franchisee's breach, default, non-renewal, lapse of time or other cause, in addition to any other obligations provided for in this Agreement, Master Franchisee must forthwith discontinue the use or display of the Marks in any manner whatsoever, and Master 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 Master 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. Master Franchisee must contact online review sites and other online directories and websites which have made reference to Master 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 BHC Restaurant) and all use of former reviews from the period Master Franchisee was a BHC Master Franchisee. And, Master 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 Master 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, if the Master Franchise Agreement is terminated, canceled, or expires, the Master Franchisee must immediately stop using the Bhc marks. The Master Franchisee is prohibited from operating under the Bhc marks, any other Bhc brand, or any name that could suggest affiliation with Bhc. This applies regardless of the reason for termination, including breach, default, non-renewal, or lapse of time.
To ensure no confusion, the Master Franchisee must repaint the business premises in a distinctly different color and remove or rearrange any distinctive trade dress elements. Additionally, the Master Franchisee must contact online review sites and directories to remove any references to the Bhc Restaurant and trademarks, including past reviews from the period they operated as a Bhc Master Franchisee. The Master Franchisee is also prohibited from using any proprietary information, trade secrets, procedures, or materials acquired during the franchise relationship.
These restrictions are designed to protect Bhc's brand and prevent any unfair competition or consumer confusion after the termination of the Master Franchise Agreement. The Master Franchisee's obligations extend to discontinuing the use of marks, trade dress, and proprietary information, ensuring a clear separation between the former franchisee and the Bhc brand.