What must I do if I want to use Alternative Supplies in my Bhc restaurant?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Except where we identify a sole single source, if you, your Affiliate Franchisee and/or your Subfranchisees propose to use in the operation of your Affiliate Franchisee and/or your Subfranchisee's BHC Restaurant any product, supply, material, furnishing or equipment which has not yet been approved by us as conforming to our specifications and quality and system standards ("Alternative Supplies") and/or from a supplier not yet approved in writing by us ("Alternative Supplier"), you must first notify us in writing and must submit to us, upon request, sufficient information, specifications, and samples so that we can determine whether the item or service complies with System standards or the supplier meets our supplier criteria.
We will provide you with written approval or disapproval within a reasonable time period (typically 30 days).
You may not, and must ensure that your Affiliate Franchisee your Subfranchisees not, use any product, supply, material, furnishing or equipment that we have not approved. Supplier approval will depend on 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/or a supplier's willingness to pay us or our affiliates for the right to do business with our System. We may inspect or re-inspect the facilities and products of any approved supplier and revoke our approval if the supplier fails to continue to meet our criteria and specifications.
As a condition of approval, you, your Affiliate Franchisee and your Subfranchisees, and/or any supplier must reimburse us for all costs and expenses incurred by us associated with any testing, including travel and lodging expenses together with daily allowance incurred where we deem it necessary to visit a supplier's facilities.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 25–28)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, if a franchisee, affiliate franchisee, or subfranchisee wants to use products, supplies, materials, furnishings, or equipment that have not been approved by Bhc and do not conform to the brand's specifications, quality, and system standards, or if they want to use a supplier not yet approved by Bhc in writing, they must first notify Bhc in writing. This applies to what Bhc terms "Alternative Supplies" and "Alternative Supplier".
The franchisee must submit sufficient information, specifications, and samples upon request so that Bhc can determine whether the item or service complies with the brand's standards or whether the supplier meets their criteria. Bhc will then provide written approval or disapproval within a reasonable time period, typically 30 days. The franchisee must ensure that unapproved products are not used.
Supplier approval depends on various factors, including 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 the Bhc system. Bhc may inspect or re-inspect the facilities and products of any approved supplier and revoke approval if the supplier fails to continue to meet their criteria and specifications. As a condition of approval, the franchisee, affiliate franchisee, subfranchisee, and/or any supplier must reimburse Bhc for all costs and expenses associated with any testing, including travel and lodging expenses, along with a daily allowance, if Bhc deems it necessary to visit a supplier's facilities.