factual

If an Auntie Annes franchisee wants to purchase from an unapproved supplier, what must they do?

Auntie_Annes Franchise · 2024 FDD

Answer from 2024 FDD Document

If you would like to offer products or use any Goods that we have not approved or to purchase or lease from a Supplier that we have not approved, you must submit a written request for approval and provide us with any information that we request. We have the right to inspect the proposed Supplier's facilities and test samples of the proposed Goods. You must pay us a charge not to exceed the reasonable cost of the inspection and our actual cost of testing the proposed Goods or evaluating the proposed Supplier, including personnel and travel costs, whether or not the Goods or Supplier is approved. We have the right to grant, deny, or revoke approval of Goods or Suppliers based solely on our judgment. We will notify you in writing of our decision as soon as practicable following our evaluation. If you do not receive our approval within 90 days after submitting all of the information that we request, our failure to respond will be deemed a disapproval of the request. The products and services that we approve for you to offer in your Shop may differ from those that we permit or require to be offered in other Shops.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 54–59)

What This Means (2024 FDD)

According to Auntie Anne's 2024 Franchise Disclosure Document, if a franchisee wants to offer products or use goods from a supplier that Auntie Anne's has not approved, the franchisee must submit a written request for approval. This request must include any information that Auntie Anne's asks for. Auntie Anne's has the right to inspect the supplier's facilities and test samples of the proposed goods.

The franchisee is responsible for paying a charge not exceeding the reasonable cost of the inspection and Auntie Anne's actual cost of testing the proposed goods or evaluating the proposed supplier. This includes personnel and travel costs, regardless of whether the goods or supplier are ultimately approved. Auntie Anne's has the right to grant, deny, or revoke approval of goods or suppliers based solely on their judgment.

Auntie Anne's will notify the franchisee in writing of their decision as soon as practical following their evaluation. If the franchisee does not receive approval within 90 days after submitting all the requested information, the lack of response will be considered a disapproval of the request. It is important to note that the products and services Auntie Anne's approves for one shop may differ from those they permit or require in other shops.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.