From whom must the opening inventory of merchandise and supplies be purchased for a Bhc franchise?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
of the Subfranchised BHC Restaurants.
Before you open your first Affiliate Franchised BHC Restaurant or your Subfranchisee open their Subfranchised BHC Restaurant, as applicable, you, your Affiliate Franchisee or your Subfranchisees, as applicable, must purchase opening inventory of merchandise and supplies that includes certain proprietary products that you, your Affiliate Franchisee, or your Subfranchisees, as applicable, must purchase from us and our affiliates. We estimate that your, your Affiliate Franchisee's, or your Subfranchisees', as applicable, cost of pre-opening inventory for each Affiliate Franchised BHC Restaurant or Subfranchised BHC Restaurant will be between $10,000 to $20,000. You, your Affiliate Franchisee, and your Subfranchisees must also pay for Site Design Review Fee and Site Review Fee, as applicable.
There are no other initial fees or payments for services or goods received from us or our affiliates before your Restaurant opens.
Item 6: Other Fees
OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee from Affiliate Franchi |
Source: Item 5 — Initial Fees (FDD pages 11–12)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees must purchase their opening inventory of merchandise and supplies, including certain proprietary products, from Bhc and its affiliates. This requirement ensures brand consistency and quality control from the outset of operations. The estimated cost for this pre-opening inventory ranges from $10,000 to $20,000.
Bhc will provide franchisees with a list of approved manufacturers, suppliers, and distributors, known as the "Approved Suppliers List," as well as a list of approved inventory products, fixtures, furniture, equipment, signs, stationery, supplies, and other necessary items, referred to as the "Approved Supplies List." These lists may specify required manufacturers or suppliers for particular products or equipment, and Bhc reserves the right to designate a required source of supply for certain products and supplies, which may include Bhc itself or its affiliates.
Franchisees are obligated to purchase all products offered at their Bhc restaurant, including those bearing Bhc trademarks, exclusively from Bhc or its designated suppliers. This restriction is in place to maintain uniformity and quality across the Bhc system. While Bhc is not currently the only approved supplier for all goods and services, it may become the sole approved supplier for certain products in the future. As of the date of the 2025 Disclosure Document, there are designated suppliers who are the only source for equipment, gift cards and merchandising materials, sauce mix, inventory items, signage, Computer System, and uniforms.
Prospective franchisees should carefully review the Approved Suppliers List and Approved Supplies List to understand the specific requirements and restrictions on sourcing products and supplies. It is also important to inquire about any potential changes to these lists and the possibility of Bhc or its affiliates becoming the sole approved supplier for additional items in the future. Understanding these requirements is crucial for managing costs and ensuring compliance with Bhc's standards.