Does Bhc currently negotiate purchase arrangements or price terms with suppliers for the benefit of franchisees?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ts as we deem appropriate or as required by the vendor or by manufacturers.
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
We issue specifications and Standards regarding authorized BHC Products and services to its franchisees through the Operations Manual and other communications in writing or by email.
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 does not currently negotiate purchase arrangements or price terms with suppliers for the benefit of franchisees. However, Bhc may negotiate prices for numerous products for the benefit of the overall Bhc system, and may receive volume discounts that are passed on to franchisees. Bhc also reserves the right to create a purchasing or distribution cooperative in the future, which franchisees would be required to participate in.
While Bhc does not negotiate on behalf of individual franchisees, the FDD indicates that suppliers may provide payments, rebates, or other consideration to Bhc based on franchisee purchases. Bhc retains and uses these payments as deemed appropriate or as required by the vendor or manufacturers. This arrangement could potentially influence Bhc's choice of approved suppliers.
Prospective franchisees should be aware that Bhc maintains a list of approved suppliers, and franchisees are generally required to purchase supplies from these approved sources. The FDD specifies that the estimated proportion of required purchases from approved suppliers is 4% to 5% when establishing a Master Franchise Business and 20% to 35% when operating the Master Franchise Business. Deviation from approved suppliers could lead to termination of the franchise agreement.