Does Bft require a franchisee to pre-pay charges when requesting approval of an alternative supplier?

According to Bft's 2025 Franchise Disclosure Document, Bft may require franchisees to pre-pay reasonable charges associated with the review and evaluation of any proposed alternative supplier, item, product, or service. This means that if a franchisee wants to use a supplier not already approved by Bft, they might have to pay Bft in advance to assess whether the new supplier meets Bft's standards.

This pre-payment covers Bft's costs for reviewing the proposed alternative, which could include administrative work, product testing, or site visits to the potential supplier. The FDD does not specify how Bft determines the amount of these charges, only that they must be reasonable.

For a prospective Bft franchisee, this implies a potential upfront cost when seeking approval for alternative suppliers. It's important to factor this into the budget when considering options outside of Bft's established supply chain. Franchisees should inquire with Bft about the typical range of these charges and the criteria used to determine reasonableness to better prepare for such expenses. Understanding the approval process and associated costs can help franchisees make informed decisions about their sourcing and manage their finances effectively.