Under what conditions can Bhc revoke approval of a supplier?

According to Bhc's 2025 Franchise Disclosure Document, Bhc may inspect or re-inspect the facilities and products of any approved supplier. Bhc can revoke its approval if the supplier fails to continue to meet Bhc's criteria and specifications.

Supplier approval depends on several factors, including 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 a supplier's willingness to pay Bhc or its affiliates for the right to do business with the Bhc system. These criteria ensure that suppliers meet Bhc's standards for quality and service.

This means that Bhc franchisees are required to use only approved suppliers who meet Bhc's standards. Bhc retains the right to ensure that these suppliers continue to meet their standards. This protects the Bhc brand by ensuring consistent quality and service across all franchise locations. It is important for prospective franchisees to understand these requirements and the potential for supplier changes, as it directly impacts their supply chain and operational costs.