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If a Bft franchisee proposes an alternative supplier, what two conditions must be met before Bft provides the supplier with standards and specifications?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)

What This Means (2025 FDD)

According to the 2025 Bft Franchise Disclosure Document, if a franchisee wishes to purchase required products or services from an alternative supplier instead of an approved supplier, Bft may provide the standards and specifications to that proposed alternative supplier if two conditions are met. First, Bft must approve the supplier in writing. Second, the alternative supplier must agree to sign Bft's prescribed form of non-disclosure agreement regarding any confidential information disclosed.

This means that a Bft franchisee cannot simply switch to a new supplier without Bft's explicit consent and the supplier's agreement to protect Bft's confidential information. This process ensures that Bft maintains control over its brand standards and protects its proprietary information.

For a prospective franchisee, this highlights the importance of understanding the approved supplier network and the process for seeking alternative suppliers. It also emphasizes the need to factor in potential costs and time delays associated with getting a new supplier approved. The non-disclosure agreement is a standard practice in franchising to protect the franchisor's trade secrets and operational methods.

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.