If a Bhc franchisee wants to use Alternative Supplies, what must they do?
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, if a franchisee wants to use products, supplies, materials, furnishings, or equipment that have not been approved by Bhc, referred to as "Alternative Supplies," or use a supplier not yet approved by Bhc, known as an "Alternative Supplier," the franchisee must first notify Bhc in writing.
The franchisee must then submit sufficient information, specifications, and samples to Bhc upon request. This allows Bhc to determine whether the alternative items or services comply with the system's standards and if the supplier meets Bhc's criteria. Bhc will then provide written approval or disapproval within a reasonable time, typically around 30 days.
The FDD states that a Bhc franchisee cannot use any product, supply, material, furnishing, or equipment that Bhc has not approved. Supplier approval depends on various factors, including product quality, delivery frequency and reliability, service standards, financial capability, customer relations, and the supplier's willingness to pay Bhc or its affiliates for the right to do business with the Bhc system. Additionally, the franchisee or the supplier may need to reimburse Bhc for all costs and expenses associated with any testing, including travel and lodging expenses if Bhc deems it necessary to visit the supplier's facilities.