Are there any contractual limitations on the frequency and cost of the obligation to acquire and maintain the Bhc Computer System?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
There are no contractual limitations on the frequency and cost of this obligation.
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.
(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 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.
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, there are no contractual limitations on the frequency and cost of the obligation to acquire and maintain the Computer System. Bhc requires franchisees to purchase and use a technology system for their Master Franchise Business and ensure their Affiliate Franchisee and Subfranchisees purchase and use the specified Computer System for the Master Franchised BHC Restaurants. The Computer System currently costs between $7,000 and $10,000.
Bhc franchisees are solely responsible for the acquisition, operation, maintenance, and upgrading of the Computer System. Bhc, nor any affiliate or third party, is obligated to provide ongoing maintenance, repairs, upgrades, or updates for the Computer System. Bhc currently does not require franchisees to purchase a maintenance, repair, upgrade, or update service contract for the Computer System, but reserves the right to do so in the future. The current annual cost of a service contract is approximately $4,000 to $10,000 per year.
Bhc reserves the right to change the point-of-sale cash register system and back-of-office computer at any time but will not require franchisees to replace these items more than three times during the initial term of the MFA. Bhc reserves the right to change the software each year. Franchisees may be required to make certain payments to Bhc or its designated suppliers at such time as Bhc designates the change or enhancement to the Computer System. Franchisees 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 their cost.