What requirements must each supplier approved by Bft comply with?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Bft Franchise Disclosure Document, any supplier that Bft approves must adhere to Bft's standard requirements regarding insurance, indemnification, and non-disclosure agreements. However, Bft does not guarantee a franchisee's performance of any supply contract with an approved supplier. Bft also retains the right to re-inspect or revoke approval of a supplier or item at any time, for any reason, to protect the interests and goodwill of the Bft system and its trademarks.
This means that while Bft maintains a list of approved suppliers, franchisees must still ensure that these suppliers meet their needs and expectations. The approval from Bft does not act as a guarantee of the supplier's performance or the quality of their products. Franchisees should conduct their own due diligence before entering into any supply contracts.
The ability of Bft to revoke approval at any time gives them significant control over the supply chain. If a supplier's approval is revoked, franchisees are immediately prohibited from placing new orders with that supplier or for the revoked product. This could potentially disrupt a franchisee's operations if they rely heavily on that supplier. Franchisees should therefore maintain contingency plans and consider diversifying their supply sources where possible to mitigate this risk.
Overall, while Bft provides a list of approved suppliers, franchisees bear the responsibility of ensuring the supplier's suitability and performance. The approval can be revoked at any time, so franchisees must be prepared to adapt to changes in the approved supplier list.