What factors does Bft consider when evaluating a supplier proposed by a franchisee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
In evaluating a supplier that you propose to us, we consider not only the quality of the particular product at issue, but also the supplier's production and delivery capability, overall business reputation and financial condition. We may provide any alternate supplier you propose with a copy of our then-current specifications for any product(s) you wish the supplier to supply, provided the supplier enters into a confidentiality and non-disclosure agreement in the form we specify. We may also inspect a proposed supplier's facilities and test its products and/or services, and request that you reimburse our actual costs associated with the testing/inspection.
We will notify you in writing within 30 days after we receive all necessary information and/or complete our inspection or testing to advise you if we approve or disapprove the proposed item and/or supplier. The criteria we use in approving or rejecting new suppliers is proprietary, but we may (although are not required to) make it available to you upon request. Each supplier that we approve must comply with our usual and customary requirements regarding insurance, indemnification and non-disclosure. If we approve any supplier, we will not guarantee your performance of any supply contract with that supplier under any circumstances. We may re-inspect and/or revoke our approval of a supplier or item at any time and for any reason to protect the best interests and goodwill of our System and Marks. The revocation of a previously approved product or alternative supplier is effective immediately when you receive written notice from us of revocation and, following receipt of our notice, you may not place any new orders for the revoked product, or with the revoked supplier.
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, when a franchisee proposes a new supplier, Bft considers several factors beyond just the product's quality. These factors include the supplier's production and delivery capabilities, overall business reputation, and financial condition. Bft requires franchisees to submit samples or information to make an informed decision about whether the goods, equipment, supplies, or the supplier itself meet Bft's specifications and quality standards.
Bft may also provide the proposed alternate supplier with their current specifications for the products the franchisee wants the supplier to provide, but only if the supplier agrees to a confidentiality and non-disclosure agreement. Bft has the right to inspect the supplier's facilities, test their products and services, and require the franchisee to cover the costs of these inspections and tests.
Bft will notify the franchisee in writing within 30 days of receiving all necessary information or completing their inspection and testing, advising whether the proposed item and/or supplier is approved or not. While the specific criteria Bft uses to approve or reject suppliers is proprietary, they may make it available to the franchisee upon request. Approved suppliers must also meet Bft's requirements for insurance, indemnification, and non-disclosure. However, Bft does not guarantee the franchisee's performance of any supply contract with an approved supplier and can re-inspect or revoke approval at any time to protect the best interests and goodwill of the Bft system and marks. If approval is revoked, the franchisee must immediately stop placing new orders with the supplier or for the revoked product upon receiving written notice from Bft.