Is Bft required to make the criteria it uses for approving or rejecting new suppliers available to franchisees?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Bft is not required to disclose the criteria it uses for approving or rejecting new suppliers to its franchisees. However, Bft may choose to make this information available upon request. The FDD states that the criteria Bft uses is proprietary.
This means that as a prospective Bft franchisee, you will not automatically be entitled to know the specific standards Bft uses to evaluate suppliers. If you want to use a supplier that is not already approved, you would need to formally propose the supplier to Bft for consideration.
While Bft may share the criteria with you, they are not obligated to do so. This lack of transparency could make it more difficult for franchisees to find alternative suppliers or negotiate better deals. It is important to note that even if a supplier is approved by Bft, Bft does not guarantee the franchisee's performance of any supply contract with that supplier.