What is the Master Franchisee prohibited from using in the operation of a Bhc Restaurant without approval?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 Franchisor's System.
Franchisor may inspect or re-inspect the facilities and products of any approved supplier and revoke Franchisor's approval if the supplier fails to continue to meet Franchisor's criteria and specifications.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a Master Franchisee must obtain approval from Bhc before using any product, supply, material, furnishing, or equipment that has not yet been approved by Bhc. This includes both the items themselves and the suppliers from which they are sourced. These unapproved items are referred to as "Alternative Supplies" and suppliers as "Alternative Supplier".
To gain approval, the Master Franchisee must notify Bhc in writing and submit sufficient information, specifications, and samples for Bhc to determine if 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 30 days.
The Master Franchisee is prohibited from using any product, supply, material, furnishing, or equipment that Bhc has not approved. Supplier approval depends on various factors, including product quality, delivery reliability, service standards, financial capability, customer relations, purchase concentration for better pricing, and the supplier's willingness to compensate Bhc or its affiliates for the right to do business with the Bhc System. Bhc retains the right to inspect or re-inspect supplier facilities and products and can revoke approval if the supplier fails to meet Bhc's criteria and specifications.