Under what conditions, besides franchise renewal, will Bhc require a franchisee to make modifications and expenditures to the Franchised Bhc Restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisor may periodically require Franchisee to update the Trade Dress used at the Franchised BHC Restaurant. Such updates will be contained in the Operations Manual or otherwise provided to Franchisee in writing. Such updates may require Franchisee to install new color schemes, logos, signage, or other visual elements. Franchisor anticipates that such Trade Dress updates will be required no more frequently than once every five years.
- (c) Franchisee will always be required to make upgrades and refurbishments to the Franchised BHC Restaurant before renewing the Franchise pursuant to section 5.2(f) of this Agreement. Otherwise, Franchisor will only require the types of modifications and expenditures described in sections 8.5(a) and 8.5(b) if Franchisor makes a good faith determination that the Franchised BHC Restaurant is substantially inconsistent with prevailing System-wide standards (including the Trade Dress, safety issues regarding customers and employees, the overall condition of the Franchised BHC Restaurant, or the type, quality or condition of the equipment needed to adequately prepare, promote and sell BHC Products) and that, as a result of its appearance or condition, the Franchised BHC Restaurant is either (i) not adequately positioned to promote and sell BHC Products as then required or (ii) damaging the integrity of the BHC image, brand or Marks.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees are generally required to maintain and periodically refurbish their restaurants to comply with the current building design, trade dress, and color schemes. These actions may require franchisees to spend money on structural changes, new equipment, remodeling, redecoration, and modifications to existing improvements. These modifications may be necessary to comply with system-wide standards or to accommodate new Bhc products. Franchisees must maintain all equipment, resolve maintenance deficiencies identified by Bhc, and upgrade equipment and technology as required by Bhc.
Bhc may also periodically require franchisees to update the trade dress used at their restaurants, with updates provided in the Operations Manual or in writing. These updates may involve installing new color schemes, logos, signage, or other visual elements. Bhc anticipates that trade dress updates will be required no more frequently than once every five years.
Outside of franchise renewal, Bhc will require modifications and expenditures if it determines in good faith that a restaurant is substantially inconsistent with system-wide standards. This includes trade dress, safety issues, the overall condition of the restaurant, or the type, quality, or condition of the equipment needed to adequately prepare, promote, and sell Bhc products. If the restaurant's appearance or condition is either not adequately positioned to promote and sell Bhc products or is damaging the integrity of the Bhc image, brand, or marks, modifications and expenditures will be required.