Under what conditions can Bhc revoke approval of a previously approved supplier?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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 inspect or re-inspect the facilities and products of any approved supplier. If a supplier fails to continue to meet Bhc's criteria and specifications, Bhc can revoke its approval.
This means that even after a supplier is initially approved for the Bhc system, their performance and products will be continuously monitored. Franchisees must ensure that their approved suppliers maintain the standards required by Bhc to avoid any disruption in their supply chain.
This condition protects Bhc's brand standards and ensures consistent quality across all franchise locations. It is a fairly standard practice in franchising, as franchisors need to maintain control over their supply chain to ensure quality and consistency. Franchisees should maintain open communication with their suppliers and Bhc to address any potential issues proactively.