factual

Is a Bft franchisee allowed to use an unapproved external terminal to process transactions?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

E. Non-Approved Services, Products or Suppliers. If Franchisee proposes to offer for sale any products, classes or services other than then-current Approved Services and Approved Products, Franchisee shall first notify Franchisor in writing and submit sufficient information, specifications and samples concerning such product, classes and/or supplier and/or service for a determination by the Franchisor whether such product, classes or supplier of service complies with the Franchisor's specifications and standards and/or whether such supplier meets the Franchisor's approved supplier criteria. Franchisor reserves the right to charge Franchisee reasonable costs in connection with Franchisor's review, evaluation and approval of alternative suppliers. These charges may include reimbursement for travel, accommodations, meal expenses, and personnel wages. Franchisor may from time to time prescribe procedures for the submission of requests for approved products and/or suppliers or services and obligations that approved suppliers must assume (which may be incorporated in a written agreement to be executed by approved suppliers). Franchisor reserves the right to revoke its approval of a previously authorized supplier, product, class or service when Franchisor determines in its discretion that such supplier, product, class or service is not meeting the specifications and standards established by Franchisor. If Franchisor modifies its list of approved products, classes and/or suppliers and/or services, Franchisee shall not, after receipt in writing of such modification, reorder any product or utilize any supplier, product, class or service that is no longer approved.

Source: Item 23 — RECEIPTS (FDD pages 79–265)

What This Means (2025 FDD)

The 2025 Bft Franchise Disclosure Document addresses the use of approved suppliers and products. Specifically, if a franchisee wants to use a product or service that is not already approved, they must first seek approval from Bft.

According to the FDD, the franchisee needs to notify Bft in writing and provide sufficient information about the proposed product or service, allowing Bft to determine if it meets their standards. Bft has the right to charge the franchisee for the costs associated with reviewing and approving alternative suppliers, which may include expenses for travel, accommodations, meals, and personnel wages.

Bft also reserves the right to modify its list of approved products and suppliers. If Bft modifies this list, franchisees are required to stop reordering any product or using any supplier that is no longer approved after receiving written notice of the change. Therefore, a Bft franchisee must gain approval before using an external terminal to process transactions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.