What rights does Auntie Annes have regarding inspecting a proposed supplier's facilities when a franchisee requests approval?
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 products or purchase from suppliers not already approved, they must submit a written request for approval and provide any information Auntie Annes requests. Auntie Annes has the right to inspect the proposed supplier's facilities and test samples of the proposed goods. The franchisee is responsible for covering the costs associated with the inspection and testing, including personnel and travel expenses, regardless of whether the supplier or goods are ultimately approved.
Auntie Annes retains the right to approve, deny, or revoke approval of suppliers and goods based solely on their judgment. The decision will be communicated in writing to the franchisee as soon as possible after the evaluation. If the franchisee does not receive approval within 90 days after submitting all required information, the request is considered disapproved.
It's important to note that the products and services Auntie Annes approves for one shop may differ from those permitted or required in other Auntie Annes locations. This allows for some flexibility but also means franchisees need to verify approved suppliers and goods specifically for their location. Auntie Annes also has the right to reinspect the facilities and goods of any approved supplier and can revoke approval if they no longer meet the current criteria. If approval is revoked, the franchisee must stop purchasing from that supplier and dispose of any remaining inventory as directed by Auntie Annes.