Under what condition can the Bhc Franchisor execute documents in the Master Franchisee's name 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 to discontinue the use of the Marks and Business Name on behalf of the Master Franchisee under specific circumstances. If the Master Franchise Agreement expires or is terminated sooner, the franchisor has the authority to act as the Master Franchisee's attorney-in-fact.
This means that if the Master Franchisee does not take the necessary steps to end the use of the Marks and Business Name after the agreement's expiration or termination, Bhc can legally execute all required documents on the Master Franchisee's behalf. This ensures that the brand's trademarks and business name are properly managed and discontinued by the former Master Franchisee, preventing unauthorized use.
This provision protects Bhc's brand identity and ensures a clean break when a franchise agreement ends. It also places the onus on the Master Franchisee to proactively handle the discontinuation process. However, it also gives Bhc a safety net to act if the Master Franchisee fails to do so, which is a fairly standard practice in franchising to protect the brand's intellectual property.