What are 'Proposed Suppliers' in the context of an Angry Chickz franchise agreement?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
9.2.2 As designated or specified by Company from time to time, Franchisee shall purchase authorized ingredients, products and services from: (i) Company or its Affiliates (if they sell or provide the same); (ii) suppliers designated by Company; (iii) suppliers approved by Company; or (iv) suppliers selected by Franchisee and with Company's prior written approval, which, subject to the other terms in this Section 9.2 ("Suppliers").
Franchisee acknowledges that Company and its Affiliates may be the sole designated supplier of certain goods and services.
If Franchisee desires to purchase or use any ingredients, products or services for or at the Franchised Business that Company has not yet evaluated, or purchase any product or service from a person or Entity (a "Proposed Supplier") that Company has not yet approved (for ingredients, products and services that Company requires Franchisee to purchase only from designated or approved suppliers), Franchisee first agrees to submit sufficient information, specifications and samples for Company to determine whether the ingredient, product or service complies with the Standards and specifications and the proposed supplier meets Company's criteria.
For each Proposed Supplier, Franchisee shall first deliver written notice seeking approval, which notice shall: (a) identify the name and address of the Proposed Supplier, (b) contain such information as may be requested by Company or required in the Manual(s) (which may include financial, operational and economic information regarding its business and product), and (c) identify the products and/or services desired to be purchased or obtained through the Proposed Supplier.
Franchisee or the Proposed Supplier must pay Company in advance (or upon Company's request, reimburse) Company's reasonably anticipated costs to review the Proposed Supplier's application and all current and future reasonable costs and expenses, to inspect and audit the Proposed Suppliers' facilities, equipment, and all product testing costs paid by Company to third parties.
Upon request, Company will furnish to Franchisee the general, but not manufacturing specifications for nonproprietary products and services if specifications are not contained in the Manual(s).
Company may request that the Proposed Supplier furnish Company, at no cost to Company, product samples, specifications and such other information as Company may require.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, a "Proposed Supplier" is defined as a person or entity that an Angry Chickz franchisee wants to purchase products or services from, but who has not yet been approved by Angry Chickz. This applies to ingredients, products, or services that Angry Chickz requires franchisees to purchase from designated or approved suppliers.
Before a franchisee can use a Proposed Supplier, they must submit sufficient information, specifications, and samples to Angry Chickz for evaluation. This allows Angry Chickz to determine whether the ingredient, product, or service complies with their standards and specifications, and whether the proposed supplier meets their criteria. The franchisee must provide written notice with the name and address of the Proposed Supplier, along with any information requested by Angry Chickz, including financial, operational, and economic details about the supplier's business and product.
The Angry Chickz franchisee or the Proposed Supplier is responsible for paying (or reimbursing) Angry Chickz's costs to review the application, inspect the supplier's facilities and equipment, and cover all product testing expenses. Angry Chickz will make an effort to notify the franchisee of their decision within 15 business days after receiving the request and information. However, Angry Chickz is not obligated to approve any Proposed Supplier and may disapprove them for any reason, including if the approval would disrupt their national or regional distribution arrangements.
Angry Chickz retains the right to request product samples and specifications from the Proposed Supplier at no cost. As a condition of approval, Angry Chickz may require the Proposed Supplier to comply with their specifications, offer goods or services only to Angry Chickz licensees and franchisees under a trademark license agreement, provide duplicate purchase invoices, and meet insurance, indemnification, and non-disclosure requirements. Angry Chickz can also inspect the Proposed Supplier's facilities and products, and may designate exclusive sources for certain items or services, potentially including Angry Chickz or its affiliates.