If Bang Cookies doesn't designate a supplier in the Manuals, what is a franchisee required to do?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
ve of the existence of competing suppliers. If, in the Manuals, we do not designate a supplier for a particular item, you will purchase all such products, supplies and services from suppliers who meet our specifications and standards. Currently, we are not and our affiliates are not approved suppliers of the source restricted goods and services identified below. Currently no officer of ours owns an interest in any of our designated suppliers.
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information, samples, and testing data that we may request. We may charge you a fee equal to the costs and expenses that we incur in reviewing and evaluating an alternate supplier, product, and/or service requested by you. We may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time not exceeding 60 days after we receive your written request and all additional information and samples that we request. We may, in our sole discretion, withhold our approval. We do not make our procedures or criteria for approving suppliers available to our System franchisees, except that when evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the suppliers quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the suppliers approval, in our sole determination, will allow us to advance the overall interests of the System and our company.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, if Bang Cookies does not designate a supplier in the manuals for a particular item, franchisees must purchase those products, supplies, and services from suppliers who meet Bang Cookies's specifications and standards.
If a franchisee wants to use a supplier not already approved by Bang Cookies, they must submit a written request for approval, along with any additional information, samples, and testing data requested by Bang Cookies. Bang Cookies may charge a fee to cover the costs of reviewing and evaluating the alternate supplier. They may also request samples for testing, documentation for evaluation, and even inspect the supplier's facilities.
Bang Cookies will notify the franchisee of their decision within 60 days of receiving the written request and all required information. Bang Cookies retains the sole discretion to withhold approval. While the specific procedures and criteria for approving suppliers are not fully disclosed to franchisees, Bang Cookies considers factors such as the supplier's ability to meet their standards, quality control measures, and whether approving the supplier will benefit the overall Bang Cookies system.
Bang Cookies estimates that purchases from approved suppliers, including exclusive suppliers, will account for approximately 80% of the total purchases and leases when establishing the franchised business and about 60% of the ongoing operating expenses.