Until when must an Antioch Pizza Shop franchisee purchase from approved suppliers?
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, franchisees must purchase products, inventory, and supplies that meet Antioch Pizza Shop's specifications from Antioch Pizza Shop or its approved suppliers. If a franchisee wants to use a different supplier, they must request approval from Antioch Pizza Shop, which may involve an evaluation fee and the supplier demonstrating its ability to meet Antioch Pizza Shop's standards. The supplier must also prove they are in good standing and maintain sufficient insurance coverage, including naming Antioch Pizza Shop and the franchisee as additional insureds. If the items supplied bear Antioch Pizza Shop's marks, the supplier must execute a license agreement.
Until Antioch Pizza Shop provides written approval of a new supplier, the franchisee must continue purchasing from previously approved suppliers. This requirement ensures consistency and quality across all Antioch Pizza Shop locations. If Antioch Pizza Shop determines that a previously approved supplier no longer meets its standards, it will notify the franchisee, who must then discontinue purchases from that supplier.
This policy has significant implications for prospective franchisees. It limits their ability to negotiate prices or source products locally, potentially affecting their profit margins. However, it also ensures that all Antioch Pizza Shop restaurants maintain a consistent level of quality, which can be a benefit for brand reputation. Franchisees should inquire about the process for supplier approval, the criteria used for evaluation, and the typical timeframe for approval to understand the flexibility they have in sourcing products.