Must a Bhc franchisee ensure that their Affiliate Franchisee and Subfranchisees offer and sell all approved products and services from their Bhc Restaurants?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, you must ensure that your Affiliate Franchisee and your Subfranchisees offer and sell from their BHC Restaurants all of the products and services that we periodically require or approve, and ensure that they do not offer or sell from their BHC Restaurants any unapproved products or services. You also must ensure that your Affiliate Franchisee and your Subfranchisees do not use the premises of their BHC Restaurants for any purpose other than the operation of a BHC Restaurant. We have the unlimited right to change the System and other items, equipment and related accessories and other products and services you, your Affiliate Franchisee and your Subfranchisee may purchase, and otherwise use in the operation of your Master Franchise Business, and your Affiliate Franchisee and your Subfranchisees may offer and sell from or use at their BHC Restaurants.
You also may not offer for sale, and must ensure that your Affiliate Franchisee and your Subfranchisees do not offer for sale, any Supplies, including the Products, through any other channels of distribution, including grocery and convenience BHC Restaurants and other retail BHC Restaurants and locations, the Internet (or any other existing or future form of electronic commerce), and other types of resale, wholesale and distribution arrangements, without our prior written consent.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 43)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee must ensure that their Affiliate Franchisee and Subfranchisees offer and sell all of the products and services that Bhc periodically requires or approves from their Bhc Restaurants. They also must ensure that their Affiliate Franchisee and Subfranchisees do not offer or sell any unapproved products or services from their Bhc Restaurants.
This obligation extends to ensuring that Affiliate Franchisees and Subfranchisees do not use the premises of their Bhc Restaurants for any purpose other than the operation of a Bhc Restaurant. Bhc retains the right to change the System and other items, equipment, related accessories, and other products and services that the franchisee, their Affiliate Franchisee, and their Subfranchisee may purchase, use, offer, or sell.
Furthermore, the franchisee must ensure that their Affiliate Franchisee and Subfranchisees do not offer for sale any supplies, including the products, through any other channels of distribution, including grocery and convenience Bhc Restaurants and other retail Bhc Restaurants and locations, the Internet (or any other existing or future form of electronic commerce), and other types of resale, wholesale, and distribution arrangements, without Bhc's prior written consent. This ensures consistency and quality across all Bhc outlets and protects the brand's image and distribution channels.