Can the Approved Suppliers List for Bhc restaurants be revised?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
proved Supplies List are not specific to the operation of a Subfranchise. We may revise the Approved Suppliers List and Approved Supplies List. We and the Approved Suppliers may make changes to the prices, delivery terms, and other terms relating to their respective sale of Approved Supplies to you, your Affiliate Franchisee and/or your Subfranchisees on 30 days' notice to you. We and the Approved Suppliers reserve the right to discontinue the sale of any Approved Supplies (or any part thereof) at any time we or the Approved Suppliers determine, in our or their sole judgment, that the continued sale of such item has become unfeasible, unprofitable, or otherwise undesirable. We give you the approved lists as we deem advisable. We generally do not give these lists to approved suppliers. We will provide contact information for your distributors and/or manufacturers of all products offered at the Master Franchised BHC Restaurant. Except where we identify a sole single source, if you, your Affiliate Franchisee and/or your Subfranchisees propose to use in the operation of your Affiliate Franchisee and/or your Subfranchisee's BHC Restaurant any product, supply, material, furnishing or equipment which has not yet been approved by us as conforming to our specifications and quality and system standards ("Alternative Supplies") and/or from a supplier not yet approved in writing by us ("Alternative Supplier"), you must first notify us in writing and must submit to us, upon request, sufficient information, specifications, and samples so that we can determine whether the item or service complies with System standards or the supplier meets our supplier criteria. We will provide you with written approval or disapproval within a reasonable time period (typically 30 days).
You may not, and must ensure that your Affiliate Franchisee your Subfranchisees not, use any product, supply, material, furnishing or equipment that we have not approved. Supplier approval will depend on product quality, delivery frequency and reliability, service standards, financial capability, customer
relations, concentration of purchases with limited suppliers to obtain better prices and service, and/or a supplier's willingness to pay us or our affiliates for the right to do business with our System. We may inspect or re-inspect the facilities and products of any approved supplier and revoke our approval if the supplier fails to continue to meet our criteria and specifications.
As a condition of approval, you, your Affiliate Franchisee and your Subfranchisees, and/or any supplier must reimburse us for all costs and expenses incurred by us associated with any testing, including travel and lodging expenses together with daily allowance incurred where we deem it necessary to visit a supplier's facilities.
Nothing contained in this Disclosure Document or in the MFA requires us to approve an inordinate number of suppliers of a given item or approve suppliers, which, in our reasonable judgment, would result in higher costs to our franchisees or prevent, in our sole judgment, our effective and economical supervision of suppliers.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 25–28)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc may revise the Approved Suppliers List and Approved Supplies List. Bhc and the Approved Suppliers can change the prices, delivery terms, and other terms relating to the sale of Approved Supplies to the franchisee, its Affiliate Franchisee, and/or its Subfranchisees with 30 days' notice.
Bhc and its Approved Suppliers also reserve the right to discontinue the sale of any Approved Supplies at any time if they determine that the continued sale of such item has become unfeasible, unprofitable, or otherwise undesirable. If a franchisee, its Affiliate Franchisee and/or its Subfranchisees propose to use any product, supply, material, furnishing, or equipment that has not yet been approved by Bhc, they must notify Bhc in writing and submit sufficient information, specifications, and samples for Bhc to determine whether the item or service complies with System standards or the supplier meets their criteria.
Bhc will provide written approval or disapproval within a reasonable time period, typically 30 days. The approval of alternative suppliers will depend on product quality, delivery frequency and reliability, service standards, financial capability, customer relations, concentration of purchases with limited suppliers to obtain better prices and service, and/or a supplier's willingness to pay Bhc or its affiliates for the right to do business with their System. Bhc may inspect or re-inspect the facilities and products of any approved supplier and revoke their approval if the supplier fails to continue to meet their criteria and specifications.
As a condition of approval, the franchisee, its Affiliate Franchisee and its Subfranchisees, and/or any supplier must reimburse Bhc for all costs and expenses incurred by them associated with any testing, including travel and lodging expenses together with daily allowance incurred where Bhc deems it necessary to visit a supplier's facilities. Bhc also issues specifications and Standards regarding authorized Bhc Products to its franchisees and approved suppliers, and may modify these specifications and standards at any time after delivering written notification of the modifications and providing its franchisees or suppliers a reasonable amount of time to implement the modifications.