Under what conditions will Bhc reimburse a franchisee for liability and costs in defending Bhc's Marks?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
While we are not required to defend you against a claim against your use of our Marks, we will reimburse you for your liability and reasonable costs in connection with defending our Marks. To receive reimbursement, you must have notified us immediately when you learned about the infringement or challenge.
Source: Item 14 — Patents, Copyrights, And Proprietary Information (FDD pages 41–42)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, while Bhc is not required to defend a franchisee against claims arising from the use of its Marks, Bhc will reimburse the franchisee for liability and reasonable costs incurred in defending those Marks.
To be eligible for reimbursement, the franchisee must immediately notify Bhc upon learning of any infringement or challenge to the Marks. Bhc retains the sole discretion to take any action it deems appropriate regarding infringements or challenges and has the right to exclusively control any related litigation or proceedings. The franchisee is obligated to sign documents and provide assistance as deemed necessary by Bhc's counsel to protect Bhc's interests in its principal trademarks.
This arrangement means that while Bhc does not proactively defend franchisees, it provides a financial safety net for legal costs associated with trademark defense, provided the franchisee promptly informs Bhc of any issues. This is a somewhat common but not universal practice in franchising; some franchisors take on the defense directly, while others offer varying levels of support. Franchisees should be aware that reimbursement is contingent on immediate notification and compliance with Bhc's directives in any legal proceedings.