From whom must a Bhc franchisee purchase all Bhc Products?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
e Subfranchisee is 7% of Gross Revenues. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Marketing and Promotion Fees | 2.5% of Gross Revenue | Same date as the Royalty Fee | Paid to BHC. However, we are not requiring this contribution at this time because we do not anticipate brand marketing until we have at least 50 BHC Restaurants in operation. Any expenses for local marketing must be paid by you directly to the vendors. We reserve the right to require payment of this fee (2.5% of Gross Revenue) once we have more than 50 BHC Restaurants in operation. |
| Product Purchases | Will vary depending on BHC Products purchased and then-current pricing. |
Source: Item 6 — Other Fees (FDD pages 12–18)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees are required to purchase all Bhc products directly from the company. The cost for these product purchases will vary based on the specific items ordered and the pricing in effect at the time of purchase.
This requirement ensures that Bhc maintains consistency and quality control across all franchise locations. By mandating that franchisees source products directly from them, Bhc can standardize the ingredients, materials, and supplies used in their restaurants. This helps to protect the brand's reputation and ensure customers receive a consistent experience at any Bhc location.
For a prospective franchisee, this means they will need to factor in the ongoing cost of product purchases from Bhc when projecting their operating expenses. It also means they will not have the flexibility to shop around for potentially lower prices from alternative suppliers. However, it also reduces the burden of researching and vetting suppliers, as Bhc handles the sourcing and quality control aspects. Franchisees should inquire about the typical range of product costs and any potential fluctuations in pricing to better understand this aspect of their investment.