What is the maximum charge that Auntie Annes can impose for inspecting a proposed supplier's facilities?
Auntie_Annes Franchise · 2024 FDDAnswer 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 Annes's 2024 Franchise Disclosure Document, if a franchisee wants to use a supplier or goods that Auntie Annes hasn't approved, the franchisee must submit a written request for approval and provide any requested information. Auntie Annes has the right to inspect the proposed supplier's facilities and test samples of the proposed goods.
The maximum charge that Auntie Annes can impose on a franchisee for the inspection of a proposed supplier's facilities is the reasonable cost of the inspection and the 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 Annes retains the right to grant, deny, or revoke approval of goods or suppliers based solely on their judgment, and will notify the franchisee in writing of their decision. If a franchisee doesn't receive approval within 90 days after submitting all the required information, the lack of response is considered a disapproval. It's also important to note that the products and services approved for one Auntie Annes shop may differ from those permitted or required in other shops.