Is a Bhc franchisee allowed to use any product that Bhc has not approved?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
ic 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.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from using any product, supply, material, furnishing, or equipment that Bhc has not approved. This requirement is in place to ensure that all franchisees maintain the system's standards for quality and consistency.
If a franchisee wishes to use an item that is not on the approved list, they must seek approval from Bhc. The franchisee is required to notify Bhc in writing and provide sufficient information, specifications, and samples for Bhc to evaluate whether the item meets the system's standards. Bhc will then provide written approval or disapproval, typically within 30 days.
Bhc's approval of alternative supplies depends on factors such as product quality, delivery reliability, service standards, financial capability of the supplier, customer relations, and the supplier's willingness to provide financial consideration to Bhc or its affiliates. Additionally, the franchisee or supplier may be required to reimburse Bhc for any costs associated with testing the alternative supplies, including travel and lodging expenses if a site visit is necessary. This process ensures Bhc maintains control over the products used within its franchise system, but it also places the onus on the franchisee to seek and potentially fund the approval of alternative products.