Can Bhc or its Approved Suppliers discontinue the sale of any Approved Supplies?

According to Bhc's 2025 Franchise Disclosure Document, Bhc and its approved suppliers retain the right to discontinue the sale of any approved supplies. This decision can be made at any time if Bhc or the approved suppliers determine, in their sole judgment, that the continued sale of an item has become unfeasible, unprofitable, or otherwise undesirable.

This clause in the franchise agreement means that Bhc franchisees face the risk that essential supplies could be discontinued. This could force franchisees to find alternative products or suppliers, potentially impacting their ability to maintain Bhc's standards and operational consistency. While Bhc is required to provide 30 days' notice for changes to prices and delivery terms, there is no such notice period mandated for the discontinuation of a product.

It is important for prospective franchisees to understand the potential implications of this clause. They should inquire about the historical frequency with which Bhc or its suppliers have discontinued products, the typical reasons for such discontinuations, and the process for franchisees to suggest or approve alternative supplies. Understanding these factors can help a franchisee better prepare for and mitigate the risks associated with supply disruptions.

Franchisees should also consider negotiating for a longer notice period for product discontinuations or for a greater say in the selection of alternative suppliers. While Bhc retains the right to make these decisions, open communication and collaboration between the franchisor and franchisees can help ensure a more stable and predictable supply chain.