factual

Can Bhc revise the Approved Suppliers List?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor may revise the Approved Suppliers List and Approved Supplies List.

Franchisor gives Master Franchisee the approved lists as Franchisor deems advisable.

Franchisor generally does not give these lists to approved suppliers.

Franchisor will provide contact information for Master Franchisee's distributors and/or manufacturers of all products offered at the BHC Restaurant.

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, Bhc has the authority to revise the Approved Suppliers List and the Approved Supplies List. This list contains the manufacturers, suppliers, and distributors that franchisees must use. The Approved Supplies List details the approved inventory products, fixtures, furniture, equipment, signs, stationery, supplies, and other items or services necessary to operate a Bhc restaurant.

Bhc may specify a required manufacturer or supplier for a specific product or piece of equipment. The list may also include specific products without naming a particular manufacturer or supplier, or it may set forth the specifications and standards for other approved products.

For a potential Bhc franchisee, this means that the suppliers they are required to purchase from can change during the term of their franchise agreement. It is important to stay up-to-date with any changes to the Approved Supplier List to ensure compliance with Bhc's standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.