For Bhc, what level of supplies and inventory must the Master Franchisee and Subfranchisee maintain?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
y not engage in any other business requiring his or her active participation during normal business hours. At least one Principal Equity Operator, with or through the General Manager, must participate personally in the direct operation of the Master Franchise Business.
- (b) Master Franchisee must, and ensure that your Subfranchisees, sell to customers BHC Products and other food and beverages specified in Franchisor's then authorized menu, and related products and accessories supplied by designated vendors and approved suppliers for resale at the BHC Restaurants in accordance with this Agreement and the Operations Manual (as periodically amended by Franchisor). Master Franchisee must only operate the Franchised Business at a Franchised BHC Restaurant, and ensure the Subfranchisees only operate their Business, in strict accordance with the procedures set forth in the Operations Manual or otherwise provided to Master Franchisee by Franchisor in writing. Master Franchisee must, and ensure the Subfranchisee, maintain an adequate level of supplies and inventory in order to properly operate the BHC Restaurant. Online ordering by customers of BHC
Products may only be made through the authorized page on Franchisor's website. Master Franchisee must, and ensure the Subfranchisee, use the standard signs and formats that Franchisor prescribes in operating the BHC Restaurant and conducting the Franchised Business.
- (c) To protect and maintain the integrity, reputation and goodwill of the System and the Marks, Franchisor requires that Master Franchisee comply, and ensure that Subfranchisees comply, with the methodology Franchisor prescribes in providing BHC Products to customers. To enhance uniformity in the delivery of goods and services to retail customers by Franchisor's Master Franchisees and the strength of Franchisor's Marks in inter-brand competition, and subject to applicable federal and state antitrust laws, Franchisor may recommend retail prices for specific BHC Products and other products and services Franchisor authorize for sale at a BHC Restaurant. If Franchisor does so, Master Franchisee may not, and ensure that Subfranchisees do not, advertise or promote (whether by telephone, printed materials, or any other media, including social media) retail prices that are inconsistent with these recommended prices. Also, to the extent permitted by federal and state law applicable to the BHC Restaurant, Franchisor may designate maximum and minimum retail prices to be charged for BHC Products.
- (d) Master Franchised BHC Restaurant must be open on a full-time basis in accordance with the hours of operation as designated by Franchisor. The obligation to remain open will not apply if Master Franchisee experiences a Force Majeure.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the Master Franchisee must ensure that both they and their Subfranchisees maintain an adequate level of supplies and inventory to properly operate the Bhc restaurant. Throughout the agreement term, the Master Franchisee and Subfranchisees must purchase and maintain equipment and inventory as needed to meet reasonably anticipated consumer demand for Bhc products. They are also required to purchase and sell ancillary products such as books, specialty foods, packaged foods, hats, t-shirts, and novelty items, as specified by Bhc periodically.
Before opening a Bhc restaurant, both Master Franchisees and Subfranchisees must purchase an opening inventory of merchandise and supplies, including certain proprietary products that must be purchased directly from Bhc or its affiliates. Bhc will provide the Master Franchisee with a list of approved manufacturers, suppliers, and distributors, referred to as the "Approved Suppliers List," as well as a list of approved inventory products, fixtures, furniture, equipment, signs, stationery, supplies, and other necessary items, known as the "Approved Supplies List."
The Approved Supplies List may specify a required manufacturer or supplier for a particular product or piece of equipment. Bhc retains the right to designate a required source of supply for certain products and supplies, and Bhc or its affiliate may be the required source. These lists may also include specific products without reference to a particular manufacturer or supplier, or they may set forth the specifications and standards for other approved products. Bhc reserves the right to revise both the Approved Suppliers List and the Approved Supplies List as deemed advisable.