Is Bhc currently involved in any purchasing or distribution cooperatives?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
We may negotiate prices for numerous products for the benefit of the System but not on behalf of individual franchisees. Currently, there is no purchasing or distribution cooperative, but we reserve the right to create a cooperative and require you to participate. We may receive volume discounts for the System which we will pass through to our franchisees. Beyond these discounts, we do not provide material benefits to you, Franchisee or your Subfranchisees because of your, your Affiliate Franchisee's, or your Subfranchisees' use of approved suppliers.
Issuance of Specifications and Standards
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 is not currently involved in any purchasing or distribution cooperatives. However, Bhc retains the right to create a cooperative in the future and require franchisee participation. Bhc may also negotiate prices for numerous products for the benefit of the system, passing volume discounts to franchisees.
While Bhc does not currently offer material benefits to franchisees based on their use of approved suppliers beyond potential volume discounts, franchisees are obligated to purchase from designated approved suppliers. Failure to do so could result in the termination of the franchise agreement. Bhc also retains the right to receive payments, rebates, and other forms of consideration from suppliers based on franchisee purchases.
Prospective franchisees should be aware that Bhc may implement a purchasing cooperative in the future, which could impact their purchasing practices. Additionally, while Bhc does not negotiate purchase arrangements for the benefit of individual franchisees, they may do so in the future. Franchisees should inquire about the potential structure and operation of any future purchasing cooperative and how it might affect their costs and sourcing options.