What is the definition of 'Alternative Supplies' for a Bhc franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, Alternative Supplies are defined as any product, supply, material, furnishing, or equipment that has not yet been approved by Bhc as conforming to their specifications, quality, and system standards. This definition is crucial for prospective franchisees because it dictates that all items used in the operation of the BHC Restaurant must meet the franchisor's standards.
Before a Bhc franchisee, Affiliate Franchisee, or Subfranchisee can use Alternative Supplies, they must notify Bhc in writing and submit sufficient information, specifications, and samples for Bhc to determine whether the item complies with System standards or the supplier meets their criteria. Bhc will then provide written approval or disapproval within a reasonable time period, typically 30 days.
The approval process ensures uniformity and quality across all Bhc locations. Franchisees must not use any product, supply, material, furnishing, or equipment that Bhc has not approved. Supplier approval depends on various factors, including 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 a supplier's willingness to pay Bhc or its affiliates for the right to do business with the System. Bhc may also inspect or re-inspect the facilities and products of any approved supplier and revoke their approval if the supplier fails to continue to meet Bhc's criteria and specifications.