Does Bft's designation of an approved supplier guarantee lower prices compared to other suppliers?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
When evaluating and approving Approved Suppliers, we consider a variety of factors. While the prices at which a supplier sells its goods or services is one factor, it is not the only factor we consider. Our designation of an Approved Supplier does not mean that such Approved Supplier's prices will be lower than those of other suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the designation of an Approved Supplier does not guarantee lower prices than other suppliers. While price is a factor Bft considers when evaluating and approving suppliers, it is not the only factor.
Bft considers a variety of factors when evaluating and approving suppliers. These factors include the quality of the product, the supplier's production and delivery capability, their overall business reputation, and financial condition. Bft may also inspect a proposed supplier's facilities and test its products and/or services, and may request that the franchisee reimburse Bft's actual costs associated with the testing/inspection.
Bft may negotiate purchase arrangements, including price terms, with designated and Approved Suppliers on behalf of the System. Bft may also establish strategic alliances or preferred vendor programs with suppliers. Bft may receive payments or other compensation from Approved Suppliers, such as rebates or commissions. During the fiscal year 2024, Bft received $154,772 in allowances, rebates, or other consideration from vendors in connection with purchases by franchisees, which constituted 6.3% of their total revenue of $2,447,103 during the year.