If a Bhc Master Franchisee wants to use Alternative Supplies, what must they do?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
pproved lists as Franchisor deems advisable. Franchisor generally does not give these lists to approved suppliers. Franchisor will provide contact information for Master Franchisee's distributors and/or manufacturers of all products offered at the BHC Restaurant. Except where Franchisor identifies a sole single source, if Master Franchisee proposes to use in the operation of a 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"), Master 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 Master Franchisee with written approval or disapproval within a reasonable time period (typically 30 days).
- (d) Master Franchisee may not, and ensure Subfranchisees do 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 Master Franchisee who wants to use Alternative Supplies must first notify Bhc in writing. They must also submit sufficient information, specifications, and samples upon request so that Bhc can determine whether the item or service complies with the System standards or whether the supplier meets Bhc's supplier criteria. Bhc will then provide written approval or disapproval within a reasonable time, typically 30 days.
This means that Bhc Master Franchisees do not have complete autonomy in choosing their supplies. They must adhere to Bhc's standards and seek approval for any deviations. This process ensures consistency and quality across all Bhc franchise locations, protecting the brand's reputation.
The criteria for supplier approval include product quality, delivery frequency and reliability, service standards, financial capability, customer relations, concentration of purchases with limited suppliers to obtain better prices and service, and a supplier's willingness to pay Bhc or its affiliates for the right to do business with Bhc's System. Bhc also retains the right to inspect or re-inspect the facilities and products of any approved supplier and revoke approval if the supplier fails to continue meeting Bhc's criteria and specifications.
This requirement is fairly standard in franchising, as franchisors typically want to maintain tight control over the supply chain to ensure quality and consistency. However, it's important for a prospective Bhc Master Franchisee to understand that this approval process exists and to factor in the time and potential costs associated with getting alternative supplies approved.