Does Bhc provide franchisees with an Approved Suppliers List?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
nd names, preparation, and presentation ("Standards"). Franchisee must purchase all products that Franchisee offers from
Franchisee's Franchised BHC Restaurant, including products which bear any of the Marks, solely and exclusively from Franchisor, or Franchisor's designated supplier.
- (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. Franchisor may revise the Approved Suppliers List and Approved Supplies List. Franchisor gives Franchisee the approved lists as Franchisor deems advisable. Franchisor generally does not give these lists to approved suppliers. Franchisor will provide contact information for Franchisee's distributors and/or manufacturers of all products offered at the Franchised BHC Restaurant. Except where Franchisor identifies a sole single source, if Franchisee proposes to use in the operation of Franchisee's Franchised 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"), 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 Franchisee with written approval or disapproval within a reasonable time period (typically 30 days).
- (l) Franchisee may 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.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc provides franchisees with a list of approved manufacturers, suppliers, and distributors, referred to as the "Approved Suppliers List." Bhc also provides a list of approved inventory products, fixtures, furniture, equipment, signs, stationery, supplies, and other items or services necessary to operate the franchised restaurant, referred to as the "Approved Supplies List."
The Approved Supplies List may specify a required manufacturer or supplier for a specific product or piece of equipment. Bhc reserves the right to designate a required source of supply for certain products and supplies, and Bhc or an affiliate may be a required source. Bhc may revise the Approved Suppliers List and Approved Supplies List as deemed advisable.
If a franchisee proposes to use any product, supply, material, furnishing, or equipment that has not yet been approved by Bhc or from a supplier not yet approved, the franchisee must first notify Bhc in writing and submit sufficient information, specifications, and samples for Bhc to determine whether the item or service complies with the system standards or whether the supplier meets Bhc's supplier criteria. Bhc will provide written approval or disapproval within a reasonable time period, typically 30 days. Franchisees may not use any product, supply, material, furnishing, or equipment that Bhc has not approved.
Supplier approval will depend on factors such as 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 Bhc's 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 Bhc's criteria and specifications. Franchisees and/or any supplier may be required to reimburse Bhc for all costs and expenses associated with any testing, including travel and lodging expenses, if Bhc deems it necessary to visit a supplier's facilities.