What does the Approved Supplies List for a Bhc franchise specify?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will provide Franchisee with a list of approved manufacturers, suppliers, and distributors ("Approved Suppliers List") and approved inventory products, fixtures, furniture, equipment, signs, stationery, supplies and other items or services necessary to operate the Franchised BHC Restaurant ("Approved Supplies List").
The Approved Supplies List may specify a required manufacturer or supplier of a specific product or piece of equipment.
Franchisor reserves the right to designate a required source of supply for certain products and supplies, and Franchisor or an affiliate may be a required source.
The lists also may include other specific products without reference to a particular manufacturer or supplier, or they may set forth the specifications and/or standards for other approved products.
Franchisor may revise the Approved Suppliers List and Approved Supplies List.
Franchisor gives Franchisee the approved lists as Franchisor deems advisable.
Franchisor generally does not give these lists to approved suppliers.
Franchisor will provide contact information for Franchisee's distributors and/or manufacturers of all products offered at the Franchised BHC Restaurant.
Except where Franchisor identifies a sole single source, if Franchisee proposes to use in the operation of Franchisee's Franchised BHC Restaurant any product, supply, material, furnishing or equipment which has not yet been approved by Franchisor as conforming to Franchisor's specifications and quality and system standards ("Alternative Supplies") and/or from a supplier not yet approved in writing by Franchisor ("Alternative Supplier"), Franchisee must first notify Franchisor in writing and must submit to Franchisor, upon request, sufficient information, specifications, and samples so that Franchisor can determine whether the item or service complies with System standards or the supplier meets Franchisor's supplier criteria.
Franchisor will provide Franchisee with written approval or disapproval within a reasonable time period (typically 30 days).
- (l) Franchisee may not use any product, supply, material, furnishing or equipment that Franchisor has 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 Franchisor's System.
Franchisor may inspect or re-inspect the facilities and products of any approved supplier and revoke Franchisor's approval if the supplier fails to continue to meet Franchisor's criteria and specifications.
- (m) As a condition of approval, Franchisee and/or any supplier must reimburse Franchisor for all costs and expenses incurred by us associated with any testing, including travel and lodging expenses incurred where we deem it necessary to visit a supplier's facilities.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Approved Supplies List contains approved inventory products, fixtures, furniture, equipment, signs, stationery, supplies, and other items or services necessary to operate a Bhc restaurant. The list may specify a required manufacturer or supplier for a specific product or piece of equipment. Bhc retains the right to designate a required source of supply for certain products and supplies, and Bhc or its affiliates may be a required source.
The Approved Supplies List may include specific products without reference to a particular manufacturer or supplier, or it may set forth the specifications and/or standards for other approved products. Bhc may revise the Approved Suppliers List and Approved Supplies List as it deems advisable. Bhc generally does not provide these lists to approved suppliers but will provide contact information for the franchisee's distributors and/or manufacturers of all products offered at the Bhc restaurant.
If a franchisee proposes to use any product, supply, material, furnishing, or equipment that has not yet been approved by Bhc, or from a supplier not yet approved, the franchisee must first 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 Bhc's supplier criteria. Bhc will provide written approval or disapproval within a reasonable time period, typically 30 days. The franchisee may not use any product, supply, material, furnishing, or equipment that Bhc has 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 Bhc or its affiliates for the right to do business with Bhc's System. Bhc may inspect or re-inspect the facilities and products of any approved supplier and revoke its approval if the supplier fails to continue to meet Bhc's criteria and specifications. As a condition of approval, the franchisee and/or any supplier must reimburse Bhc for all costs and expenses associated with any testing, including travel and lodging expenses incurred where Bhc deems it necessary to visit a supplier's facilities.