From whom must a Bhc subfranchisee purchase Bhc products?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
nts, brand names, preparation, and presentation ("Standards"). You and your Affiliate Franchise must purchase, and must ensure that your Subfranchisees only purchase, all products that your Affiliate Franchise and your Subfranchisee offer from a Master Franchised BHC Restaurant, including products which bear any of our trademarks, solely and exclusively from BHC, or our designated supplier.
For purposes of clarification, except as otherwise provided in the MFA or in writing by us, you and your Affiliate Franchisee must purchase all BHC Products from BHC, and your Subfranchisees shall purchase all BHC Products to be used and sold from their Master Franchised BHC Restaurants from BHC or our affiliates. You may not, and must ensure that your Subfranchisees do not, distribute, sell, resell, supply, license, sublicense, lease, rent, loan, market, provide access to, make available or transfer any Supplies to any third party.
Required Purchases of Goods or Services, including Computer and Point of Sale System
In order to ensure a uniform image and uniform quality of products and services throughout the System, you and your Affiliate Franchisee must maintain and comply with and must ensure that your Subfranchisees maintain and comply with our Standards.
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, a Subfranchisee must purchase all BHC Products to be used and sold from their Master Franchised BHC Restaurants from BHC or its affiliates. This requirement ensures consistency and quality across all Bhc locations.
This means that a Bhc subfranchisee cannot source products from any other supplier, even if those products are cheaper or more readily available. The subfranchisee is obligated to purchase directly from Bhc or its designated affiliates. This restriction is in place to maintain brand uniformity and quality control, which are critical aspects of any franchise system.
Bhc retains the right to receive payments, rebates, and other forms of consideration from suppliers based upon the purchases of goods, products, and services by the franchisee, affiliate franchisee, and subfranchisees. These payments are often calculated based on the volume of products sold. Bhc will retain and use such payments as it deems appropriate or as required by the vendor or by manufacturers.
Prospective subfranchisees should carefully consider the implications of these purchasing restrictions, including the potential impact on their profit margins and operational flexibility. It is important to understand the pricing structure and supply chain logistics to ensure that the business can operate efficiently and profitably within the framework established by Bhc.