Under what circumstances might Afuri Ramen Dumpling withhold approval of a supplier proposed by a franchisee?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Subject to your obligation to purchase goods and services from certain exclusively designated suppliers, with advance written notice you may request our approval to obtain products, equipment, supplies or materials from sources that we have not previously approved. We may require you to give us sufficient information, photographs, drawings, samples, and other data to allow us to determine whether the items from these other sources meet our specifications and standards, as established from time to time. These specifications and standards will relate to quality, taste, durability, value, cleanliness, texture, composition, strength, finish and appearance, and the suppliers' capacity and facility to supply your needs in the quantities, at the times, and with the reliability necessary for efficient operation. We may require that samples from any supplier be delivered to a designated independent testing laboratory for testing before approval and use. You will reimburse us for the actual cost of the tests. We will license any supplier that can meet or exceed our quality control requirements and standards, for a reasonable license fee, to produce and deliver products to you but to no other person. Our confidential recipes, ingredients, requirements, designs, systems and formulas will be revealed to potential suppliers only after we have received reasonable evidence that the proposed supplier is trustworthy and reputable; has the capacity to consistently follow our standards, requirements and testing procedures; will maintain the confidentiality of the designs, systems, formulas, ingredients and recipes; and will adequately supply your reasonable needs. We will not unreasonably withhold approval of a supplier you propose (unless we have previously designated a single supplier or exclusive suppliers for certain products or services). We will endeavor in good faith to notify you in writing of the approval or disapproval of any supplier you propose within 30 days of our receipt from you of your written notice of request for approval.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, franchisees have the option to request approval for products, equipment, supplies, or materials from suppliers not previously approved by Afuri Ramen Dumpling, provided they give advance written notice. Afuri Ramen Dumpling may require franchisees to submit information such as photographs, drawings, samples, and other data to assess whether the proposed supplier meets their standards.
Afuri Ramen Dumpling's specifications and standards relate to various factors including quality, taste, durability, value, cleanliness, texture, composition, strength, finish, and appearance. They also consider the supplier's capacity and facility to meet the franchisee's needs in terms of quantity, timing, and reliability for efficient operations. Afuri Ramen Dumpling may also require samples from the supplier to be tested at an independent laboratory, with the franchisee responsible for covering the costs of these tests.
While Afuri Ramen Dumpling states that they will not unreasonably withhold approval of a supplier, this is conditional. If Afuri Ramen Dumpling has already designated a single or exclusive supplier for certain products or services, they are not obligated to approve an alternative supplier proposed by the franchisee. Afuri Ramen Dumpling aims to notify the franchisee in writing of the approval or disapproval of their proposed supplier within 30 days of receiving the written request.