What does the Bhc Franchisor do with the payments, rebates, and other forms of consideration received from suppliers?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (o) Franchisor and Franchisor's affiliates have the right to receive payments, rebates, and other forms of consideration from suppliers based upon Franchisee's (and other franchisees') purchases of goods, products, and services as described in this section, as well as in connection with any future purchases of any goods, products, and services.
Most of these payments are calculated as an amount based on products sold to Franchisee and Franchisor affiliate-owned Franchised BHC Restaurants.
Franchisor will retain and use such payments as we deem appropriate or as required by the vendor or by manufacturers.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc and its affiliates have the right to receive payments, rebates, and other forms of consideration from suppliers based on franchisee purchases of goods, products, and services. These payments are often calculated based on products sold to franchisees and Bhc affiliate-owned franchised restaurants.
Bhc retains and uses these payments as it deems appropriate or as required by the vendor or manufacturers. This means Bhc has the discretion to decide how to allocate these funds, which could include reinvesting in the franchise system, using them for operational expenses, or other purposes.
This arrangement is fairly common in franchising, where franchisors negotiate with suppliers and receive consideration for directing franchisee purchases. However, it's important for prospective Bhc franchisees to understand that these payments are not necessarily passed on to them directly in the form of lower prices or other benefits, beyond any volume discounts Bhc may negotiate for the entire system and pass through to franchisees.