How long does Bang Cookies have to notify a franchisee of their decision regarding an 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 wants to purchase or lease a source restricted item from a supplier not previously approved, they must submit a written request to Bang Cookies for approval. This request must include any additional information, samples, and testing data that Bang Cookies may require. Bang Cookies may also charge a fee to cover the costs of reviewing and evaluating the alternate supplier, product, or service. Bang Cookies may request samples from the supplier for testing, documentation for evaluation, and may also require an inspection of the supplier's facilities.
Bang Cookies will then notify the franchisee of their approval or disapproval within a reasonable time, but not exceeding 60 days. This 60-day period starts after Bang Cookies receives the franchisee's written request and all additional information and samples requested. However, Bang Cookies retains the sole discretion to withhold approval.
This process is important for prospective Bang Cookies franchisees to understand, as it outlines the steps and timeline involved in seeking approval for alternate suppliers. While franchisees have the option to request approval for different suppliers, Bang Cookies maintains control over the supply chain to ensure quality and consistency across the franchise system. The potential fees associated with the review process and the possibility of disapproval should also be considered by franchisees when making purchasing decisions.