From whom must a Bang Cookies franchisee exclusively purchase the System Supplies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
(2) The Franchised Business will exclusively: (a) offer and sell the Approved Services and Products; (b) provide the Approved Services and Products in accordance with the System's standards and specifications; (c) exclusively purchase all System Supplies, including, but not limited to, merchandise, inventory, and supplies, from Franchisor or Franchisor's designated suppliers; (d) exclusively purchase and use equipment, supplies, promotional materials, point of sale systems and Business Management Systems designated by Franchisor and subject to Franchisor's specifications; (e) purchase interior displays, point of sale displays, uniforms, supplies, marketing materials and promotional materials including, but not limited to, System Supplies, as designated by Franchisor and only from Franchisor or Franchisor's approved supplier(s); and (f) purchase from distributors and other suppliers approved by Franchisor all other materials, inventory, goods, and supplies including, but not limited to, System Supplies, used in offering, selling, preparing, providing, marketing, and/or selling the Approved Services and Products.
(3) Franchisor has and will periodically approve suppliers and distributors of the equipment, materials, supplies and products including, but not limited to, System Supplies, that meet Franchisor's standards, specifications, and requirements including, without limitation, standards, specifications, and requirements relating to the equipment and supplies to be used by the Franchised Business.
(4) Franchisor, in Franchisor's Reasonable Business Judgment, may from time to time modify the list of approved brands, suppliers and distributors of System Supplies and approved equipment, supplies and services to be utilized by the Franchised Business and Franchisee shall, after receipt in writing of such modification, not reorder any brand and/or purchase from any supplier or distributor that is no longer designated or approved by Franchisor.
(5) Franchisor reserves the right to designate from time to time a single supplier and/or distributor for any services, products, equipment, supplies, or materials including, but not limited to, the System Supplies and to require Franchisee to use such a designated supplier exclusively, which exclusive designated supplier and/or distributor may be Franchisor and/or Franchisor's affiliates.
Franchisor and its affiliates may receive payments from suppliers and/or distributors on account of
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees are required to purchase all System Supplies exclusively from Bang Cookies or Bang Cookies's designated suppliers. System Supplies include merchandise, inventory, and supplies, among other items, that constitute the Approved Services and Products.
This requirement ensures uniformity and quality control across all Bang Cookies locations. Bang Cookies retains the right to modify the list of approved suppliers and distributors, and franchisees must comply with these changes after receiving written notice. This means a franchisee cannot reorder from a supplier that is no longer approved by Bang Cookies.
Bang Cookies also reserves the right to designate a single exclusive supplier or distributor for any services, products, equipment, supplies, or materials, including System Supplies. This exclusive supplier may be Bang Cookies itself or one of its affiliates. This allows Bang Cookies to potentially benefit financially from these supplier relationships, as the document mentions that Bang Cookies and its affiliates may receive payments from suppliers and distributors based on franchisee purchases.
For a prospective franchisee, this means they will have limited or no flexibility in sourcing supplies and must adhere strictly to Bang Cookies's approved vendors. It is important to understand the pricing and terms offered by these designated suppliers, as this can significantly impact the franchisee's operating costs and profitability. Franchisees should also inquire about the process for suggesting or requesting new suppliers if they find better options, although approval is ultimately at Bang Cookies's discretion.