Is a Bhc franchisee allowed to use any product that the franchisor has not approved?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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 restriction is in place to ensure that all franchisees maintain the system's standards for quality and consistency.
If a Bhc 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 suppliers depends on various factors, including product quality, delivery reliability, service standards, financial capability, customer relations, and the supplier's willingness to offer competitive pricing and service. Bhc also retains the right to receive payments or rebates from suppliers based on franchisee purchases. Franchisees may be required to reimburse Bhc for any costs associated with testing and inspecting alternative supplies or suppliers.
This level of control over supplies is common in franchising to maintain uniformity and quality across all locations. However, it's important for prospective Bhc franchisees to understand that they will have limited flexibility in sourcing products and supplies and may incur costs associated with seeking approval for alternative options.