Before opening, what kind of inventory must a Bhc franchisee purchase?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(j) Before opening the Franchised BHC Restaurant, Franchisee must purchase opening inventory of merchandise and supplies that includes certain proprietary products that Franchisee must purchase from Franchisor and Franchisor's affiliates.
(k) Franchisor will provide Franchisee with a list of approved manufacturers, suppliers, and distributors ("Approved Suppliers List") and approved inventory products, fixtures, furniture, equipment, signs, stationery, supplies and other items or services necessary to operate the Franchised BHC Restaurant ("Approved Supplies List").
The Approved Supplies List may specify a required manufacturer or supplier of a specific product or piece of equipment.
Franchisor reserves the right to designate a required source of supply for certain products and supplies, and Franchisor or an affiliate may be a required source.
The lists also may include other specific products without reference to a particular manufacturer or supplier, or they may set forth the specifications and/or standards for other approved products.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, before opening a franchised restaurant, a franchisee must purchase an opening inventory of merchandise and supplies. This inventory includes certain proprietary products that the franchisee is required to purchase directly from Bhc or its affiliates.
Bhc will provide franchisees 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 items necessary to operate the restaurant, known as the "Approved Supplies List." These lists may specify required manufacturers or suppliers for specific products or equipment. Bhc retains the right to designate a required source of supply for certain products and supplies, and Bhc or its affiliates may be a required source.
The Approved Supplies List may also include specific products without reference to a particular manufacturer or supplier, or it may set forth the specifications and standards for other approved products. This ensures that franchisees have a clear understanding of the required inventory and where to source it, maintaining consistency and quality across all Bhc locations.