Under what circumstances might Bft refuse to approve proposals from franchisees to add new suppliers?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, when appropriate, negotiate purchase arrangements, including price terms, with designated and Approved Suppliers on behalf of the System. We may establish strategic alliances or preferred vendor programs with suppliers that are willing to supply some products, equipment, or services to some or all of the Studios in our System. If we do establish those types of alliances or programs, we may: (i) limit the number of Approved Suppliers with whom you may deal; (ii) designate sources that you must use for some or all products, equipment and services; and (iii) refuse to approve proposals from franchisees to add new suppliers if we believe that approval would not be in the best interests of the System.
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 may refuse to approve proposals from franchisees to add new suppliers if they believe that such approval would not be in the best interests of the Bft system.
This means that while franchisees may propose new suppliers, Bft retains the ultimate authority to decide whether or not to approve them. This decision is based on Bft's assessment of what is best for the overall Bft franchise system, not necessarily what might be most beneficial for an individual franchisee.
Bft considers various factors when evaluating a proposed supplier, including the quality of the product, the supplier's production and delivery capabilities, their overall business reputation, and their financial condition. Bft may also inspect the proposed supplier's facilities and test their products or services, with the franchisee potentially required to reimburse Bft for the costs of such testing or inspection.
This provision allows Bft to maintain consistency and quality control across its franchise system by carefully vetting all suppliers. However, it also means that franchisees may be limited in their choice of suppliers and may not be able to use a supplier that offers lower prices or other advantages if Bft does not approve them.