What must an Antioch Pizza Shop franchisee do to request approval of a supplier?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) All Other Products, Inventory or Supplies. Franchisor will from time to time establish and publish reasonable specifications for the types of products, inventory and supplies authorized for use in connection with the operation of the Restaurant. Franchisee must purchase products, inventory and supplies that meet Franchisor's specifications from Franchisor or suppliers approved by Franchisor. Franchisor may, in its sole discretion, approve suppliers selected by Franchisee provided the following conditions are first met:
- (A) Franchisee shall submit a written request to Franchisor for approval of the supplier and pay Franchisor an evaluation fee upon receipt of invoice therefor as compensation for Franchisor's investigation and sampling of Franchisee's proposed supplier;
- (B) The supplier shall demonstrate to Franchisor's satisfaction that it is able to supply an item to Franchisee meeting Franchisor's specifications for such item, including but not limited to, providing Franchisor with samples and the opportunity to inspect its facilities from time to time;
- (C) The supplier shall demonstrate to Franchisor's satisfaction that the supplier is of good standing in the business community with respect to its financial soundness and the reliability of its product and service;
- (D) The supplier shall obtain, maintain and submit to Franchisor proof of, sufficient insurance coverage (including, but not limited to, product liability coverage) at limits and including coverage acceptable to Franchisor, and include Franchisor and Franchisee as additional named insureds with the right to receive at least thirty (30) days' prior written notice of any modification, cancellation or termination of such policy; and
- (E) In the event the item to be supplied is required to bear one of the Marks, such supplier must execute a license agreement (which may include a royalty payment) in a form acceptable to Franchisor.
Until and unless Franchisor notifies Franchisee in writing that it has approved a supplier, Franchisee must continue to purchase from previously approved suppliers. If Franchisor determines that a previously approved supplier no longer conforms to such standards, it shall so notify Franchisee and Franchisee shall thereupon discontinue making purchases from supplier.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, if a franchisee wants to use a supplier not already approved by Antioch Pizza Shop, they must first submit a written request to Antioch Pizza Shop for approval. The franchisee must also pay an evaluation fee to Antioch Pizza Shop upon receipt of an invoice, which covers the costs associated with Antioch Pizza Shop's investigation and sampling of the proposed supplier's products.
In addition to the franchisee's responsibilities, the supplier must also meet certain requirements. The supplier must demonstrate to Antioch Pizza Shop that they can consistently meet Antioch Pizza Shop's specifications for the items they will supply. This includes providing samples and allowing Antioch Pizza Shop to inspect their facilities. The supplier must also prove they are in good standing within the business community, demonstrating financial stability and reliable products and services.
Furthermore, the potential supplier needs to maintain sufficient insurance coverage, including product liability, with coverage limits and terms acceptable to Antioch Pizza Shop. Antioch Pizza Shop and the franchisee must be included as additional insured parties on the policy, with the right to receive at least 30 days' notice of any changes to the insurance. If the items supplied require the use of Antioch Pizza Shop's trademarks, the supplier must also sign a license agreement with Antioch Pizza Shop, which may include royalty payments. Until Antioch Pizza Shop provides written approval of a supplier, the franchisee must continue using previously approved suppliers.