What kind of information might Bang Cookies request when reviewing a proposed alternate supplier?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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 a franchisee wishes to use a supplier not already approved by Bang Cookies, they must submit a written request for approval. Bang Cookies may then ask for additional information, samples, and testing data to evaluate the proposed supplier.
Bang Cookies may also charge a fee to cover the costs and expenses they incur while reviewing the alternate supplier, product, or service. This fee could potentially add to the franchisee's operational costs. Bang Cookies may request samples from the supplier for testing and documentation for evaluation. They may also require an inspection of the supplier's facilities, though this is subject to their discretion.
Bang Cookies will notify the franchisee of their decision within 60 days of receiving the written request and all required information and samples. However, Bang Cookies retains the sole discretion to withhold approval. When evaluating a supplier, Bang Cookies considers whether the supplier can meet their standards, specifications, and production requirements, as well as the supplier's quality control measures. They also consider whether Bang Cookies or its affiliates are the exclusive supplier of the item and whether approving the supplier will advance the overall interests of the Bang Cookies system.
This process highlights the importance of using approved suppliers to avoid potential delays and additional costs. It also demonstrates Bang Cookies's control over the supply chain to maintain quality and consistency across all franchise locations. A prospective franchisee should carefully consider these restrictions and the potential impact on their ability to source goods and services independently.