Can Auntie Annes change or add Approved Suppliers at any time?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to require that Approved Products, other products, Proprietary Ingredients, supplies (including chemicals), furniture, fixtures, equipment, and services (collectively, "Goods") that you purchase for resale or purchase or lease for use in your Shop: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from Approved Suppliers; (iv) be purchased or leased only from a single source that we designate (which may include us or our affiliates or a buying cooperative organized by us or our affiliates); and/or (v) be purchased as part of a purchasing program, arrangement, or contract that we negotiate or specify. We may add or change Approved Suppliers at any time.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 54–59)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, Auntie Annes has the right to modify the list of Approved Suppliers at any time. This means Auntie Annes can add new suppliers or remove existing ones as they see fit.
This ability to change suppliers gives Auntie Annes flexibility in managing its supply chain and ensuring quality control. However, it also means that franchisees must be prepared to switch suppliers if Auntie Annes makes changes. Franchisees are required to purchase specific items, including ingredients, supplies, and equipment, from Auntie Annes, its affiliates, or designated Approved Suppliers.
While changes to approved suppliers are generally uniform for all franchisees, Auntie Annes may designate a supplier as ineligible at their sole discretion. If a supplier's approval is revoked, franchisees must stop purchasing from them and dispose of any remaining inventory as directed by Auntie Annes. This could potentially lead to unexpected costs or disruptions for franchisees if they need to find new sources for essential goods or dispose of existing stock.
Prospective franchisees should be aware of Auntie Annes's right to change Approved Suppliers and factor this into their business planning. It is important to maintain open communication with Auntie Annes to stay informed about any changes to the Approved Supplier list and to understand the reasons behind those changes.