What must a Bft franchisee do before purchasing from a non-approved supplier?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
private-label products that bear our Marks, and require you to purchase these items from us or our affiliate(s).
If you wish to purchase a product or service that we require you to purchase from an Approved Supplier from an alternate source, then you must obtain our prior written approval as outlined more fully in this Item. We may provide our standards and specifications for our Approved Products and Approved Services directly to our Approved Suppliers, and may provide these standards and specifications to an alternative supplier you propose if: (i) we approve the supplier in writing as outlined more fully in this Item; and (ii) the alternative supplier agrees to sign our prescribed form of non-disclosure agreement with respect to any Confidential Information we disclose.
As of the date of this Disclosure Document: (i) other than the Pre-Sales and Soft Opening Retail Inventory Kit, the technology services we provide in exchange for our then-current Technology Fee, and certain services that XPS provides, such as custom millwork, cabinets, tables, display cases, engraved wood signs, point of sale displays, custom acrylic panels, and other similar products, neither we nor any of our affiliates are an Approved Supplier for any items you are required to purchase in connection with your Studio as part of our standard Franchise offering; and (ii) none of our officers own an interest in any of our Approved Suppliers other than us.
We may designate us or any of our affiliates as an Approved Supplier with respect to any other item you must purchase in connection with your Studio in the future.
Required Purchases and Right to Derive Revenue
The products or services we require you to purchase or lease from an Approved Supplier, or purchase or lease in accordance with our System Standards, are referred to collectively as your "Required Purchases." We estimate that your Required Purchases in total will be about 39% to 73% of your total purchases to establish the Studio and about 50% to 66% of your purchases to continue the operation of the Studio. Please be advised that these percentages do not include the lease payments that you make in connection with your Studio.
We and our affiliates may derive revenue from any of the purchases that our System franchisees are required to make in connection with the Studio. In fiscal year 2024, we did not receive any revenue from the sale of goods and services to franchisees, but our Predecessor received $4,727,544 from franchisees.
Non-Approved Product/Service and Alternate Supplier Approval
We may, but are not obligated to, grant your request to: (i) offer any products or services in connection with your Studio that are not Approved Products and Approved Services; or (ii) purchase any item or service we require you to purchase from an Approved Supplier from an alternative supplier.
If you wish to undertake either of these actions, you must request and obtain our approval in writing before: (i) using or offering the non-approved product or service in connection with your Studio; or (ii) purchasing from a non-approved supplier. You must pay us our then-current non-approved product or supplier evaluation fee when submitting your request, as well as cover our costs incurred in evaluating your request. We may ask you to submit
samples or information so that we can make an informed decision whether the goods, equipment, supplies or supplier meet our specifications and quality standards.
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, if a franchisee wishes to purchase any item or service that Bft requires them to purchase from an Approved Supplier, from an alternate source, they must first obtain Bft's prior written approval. To get this approval, the franchisee must submit a request and pay Bft's then-current non-approved product or supplier evaluation fee, as well as cover Bft's costs incurred in evaluating the request.
Bft may ask the franchisee to submit samples or information so that Bft can decide whether the goods, equipment, supplies, or supplier meet their specifications and quality standards. Bft will consider the quality of the product, the supplier's production and delivery capability, overall business reputation, and financial condition. Bft may provide the alternate supplier with a copy of their specifications for the product, provided the supplier enters into a confidentiality and non-disclosure agreement.
Bft may also inspect the proposed supplier's facilities and test its products or services, and request that the franchisee reimburse their actual costs associated with the testing or inspection. Bft will notify the franchisee in writing within 30 days after receiving all necessary information or completing their inspection or testing to advise if they approve or disapprove the proposed item or supplier. Each approved supplier must comply with Bft's usual requirements regarding insurance, indemnification, and non-disclosure. Bft does not guarantee the franchisee's performance of any supply contract with an approved supplier and may re-inspect or revoke approval of a supplier or item at any time to protect the best interests and goodwill of their System and Marks. The revocation is effective immediately upon written notice, and the franchisee may not place any new orders for the revoked product or with the revoked supplier.