Can Bhc revise the Approved Suppliers List and Approved Supplies List?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
We provide you 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 Master 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.
We reserve the right to designate a required source of supply for certain products and supplies, and we 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.
A copy of the current list of Approved Supplies List is attached as Exhibit H.
The Approved Suppliers and Approved Supplies List are not specific to the operation of a Subfranchise.
We may revise the Approved Suppliers List and Approved Supplies List.
We and the Approved Suppliers may make changes to the prices, delivery terms, and other terms relating to their respective sale of Approved Supplies to you, your Affiliate Franchisee and/or your Subfranchisees on 30 days' notice to you.
We and the Approved Suppliers reserve the right to discontinue the sale of any Approved Supplies (or any part thereof) at any time we or the Approved Suppliers determine, in our or their sole judgment, that the continued sale of such item has become unfeasible, unprofitable, or otherwise undesirable.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 25–28)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Bhc retains the right to revise both the Approved Suppliers List and the Approved Supplies List. This is a common practice in franchising, allowing the franchisor to maintain quality control and consistency across all franchise locations. Bhc also 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 and its Approved Suppliers can change prices, delivery terms, and other terms related to the sale of Approved Supplies to franchisees, affiliate franchisees, and subfranchisees, provided they give 30 days' notice. Additionally, Bhc and the Approved Suppliers can discontinue the sale of any Approved Supplies if they determine that the continued sale of the item is unfeasible, unprofitable, or otherwise undesirable.
For a prospective franchisee, this means that the suppliers and products they are required to use can change, potentially impacting their costs and operations. It is important to stay informed of any changes to the Approved Suppliers List and Approved Supplies List and to factor in the possibility of such changes when making financial projections. Franchisees should also be aware that Bhc may receive payments, rebates, and other forms of consideration from suppliers based on franchisee purchases.