Can Bhc revoke approval of a supplier?

According to Bhc's 2025 Franchise Disclosure Document, Bhc has the authority to inspect or re-inspect the facilities and products of any approved supplier. If a supplier fails to continue meeting Bhc's criteria and specifications, Bhc can revoke its approval. This applies to both franchisees and master franchisees.

This provision ensures that all suppliers meet Bhc's standards for product quality, delivery, service, and financial stability. It also allows Bhc to maintain consistent customer relations and potentially negotiate better prices through concentrated purchasing.

For a prospective franchisee, this means that even if a supplier is initially approved, Bhc can remove them from the approved list if they fail to maintain the required standards. This could require the franchisee to switch to a new supplier, potentially impacting costs and supply chain logistics. Franchisees and master franchisees may be required to reimburse Bhc for costs associated with supplier inspections, including travel and lodging.

Bhc's right to revoke supplier approval is a standard practice in franchising, designed to protect brand standards and ensure quality control across all franchise locations. Franchisees should stay informed about any changes to the approved supplier list and be prepared to adapt to new suppliers if necessary.