Does Bang Cookies make their procedures for approving suppliers available to franchisees?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
We estimate that your purchase of goods and services from suppliers according to our specifications,
including your purchase of goods or services from our designated exclusive suppliers, to represent approximately 80% of your total purchases and leases in establishing the Franchised Business and approximately 60% of the on-going operating expenses of the Franchised Business. We currently require that you purchase or lease the following source restricted goods and services:
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- Lease We do not review the terms of the lease for your Shop Location but require that your landlord acknowledge our rights as set forth in the lease agreement rider attached as Exhibit 4 to the Franchise Agreement (the "Lease Agreement Rider") and that you collaterally assign the lease to us as set forth in the collateral assignment of lease attached as Exhibit 5 to the Franchise Agreement (the "Collateral Assignment of Lease").
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, the company does not make its procedures or criteria for approving suppliers available to its franchisees. However, when evaluating a supplier, Bang Cookies considers several factors. These include the supplier's ability to meet Bang Cookies's standards, specifications, and production requirements, as well as their quality control processes. Bang Cookies also considers whether they or their affiliates are the exclusive supplier of the particular item and whether approving the supplier will advance the overall interests of the Bang Cookies system.
If a franchisee wants to purchase or lease a source-restricted item from a supplier not already approved by Bang Cookies, they must submit a written request for approval. This request must include any additional information, samples, and testing data that Bang Cookies may require. The franchisee may also be charged a fee to cover the costs Bang Cookies incurs while reviewing and evaluating the alternate supplier, product, or service. Bang Cookies may also request samples from the supplier for testing, documentation for evaluation, and may even require an inspection of the supplier's facilities.
Bang Cookies will notify the franchisee of their approval or disapproval within 60 days after receiving the written request and all required information and samples. However, Bang Cookies retains the sole discretion to withhold approval. This means that even if a franchisee finds a potentially better or more cost-effective supplier, Bang Cookies has the final say and is not obligated to explain its decision-making process in detail to the franchisee.