Under what condition can the Bhc Franchisor execute documents on behalf of the Master Franchisee to discontinue the use of the Marks and Business Name?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) On expiration or sooner termination of this Agreement, Franchisor may, if Master Franchisee does not do so, execute in Master Franchisee's name and on Master Franchisee's behalf all documents necessary, in Franchisor's judgment, to end and cause a discontinuance of the use by Master Franchisee of the Marks and Business Name registrations and Franchisor is hereby irrevocably appointed and designated as Master Franchisee's attorney-in-fact to do so.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisor can execute documents on behalf of the master franchisee to discontinue the use of the Marks and Business Name under specific circumstances. If the master franchisee does not execute the necessary documents themselves upon the expiration or termination of the franchise agreement, Bhc reserves the right to do so.
This provision ensures that Bhc can protect its brand and trademarks even if a master franchisee fails to take the required steps to discontinue using the Marks and Business Name after the agreement ends. To facilitate this, the master franchisee irrevocably appoints Bhc as their attorney-in-fact, granting them the authority to execute these documents.
For a prospective Bhc master franchisee, this means understanding that upon termination or expiration of the agreement, they must promptly discontinue using the Bhc Marks and Business Name. If they fail to do so, Bhc has the legal right to act on their behalf to ensure compliance, which could involve legal and administrative actions taken in the master franchisee's name but at the discretion of Bhc.