Who is responsible for purchasing the opening inventory of merchandise and supplies 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
Source: Item 5 — Initial Fees (FDD pages 11–12)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchisee is responsible for purchasing the opening inventory of merchandise and supplies for their Bhc restaurant. This includes certain proprietary products that the franchisee must purchase directly from Bhc or its affiliates.
Specifically, before opening a Bhc Restaurant, the franchisee must acquire an initial stock of merchandise and supplies. These supplies must include proprietary items sourced exclusively from Bhc or its designated suppliers. This requirement ensures brand consistency and quality control across all franchise locations.
The estimated cost for this pre-opening inventory ranges from $10,000 to $20,000. This cost is in addition to other initial fees, such as Site Design Review Fee and Site Review Fee, that the franchisee must also cover before opening their restaurant. Franchisees should factor these expenses into their initial investment calculations.
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 necessary items, known as the "Approved Supplies List." Bhc retains the right to designate required sources for certain products and supplies, and Bhc or its affiliates may be a required source. These lists may specify particular manufacturers or suppliers for specific products or equipment, or they may outline specifications and standards for other approved products.