Is a Baya Bar franchisee allowed to use an unapproved supplier before receiving approval?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.6 Unapproved Item/Suppliers.
If Franchisee desires to purchase, lease or use any unapproved equipment, product, or service or to purchase, lease or use any equipment, product or service from an unapproved supplier, Franchisee shall submit to Franchisor a written request for such approval prior to utilizing such product, service or supplier.
Franchisee shall not purchase or lease any item or use any supplier until and unless such item or supplier has been approved in
writing by Franchisor. Franchisor shall have the right to require that its representatives be permitted to inspect the supplier's facilities and to test or otherwise evaluate samples from the supplier. Franchisor reserves the right to charge Franchisee a fee equal to the actual cost and expense for inspection and testing. Franchisor shall notify Franchisee whether Franchisor approves or disapproves of the proposed item or supplier within thirty (30) days after Franchisor receives all required information to evaluate the product, service or supplier. Franchisor reserves the right, at its option, to re-inspect from time to time the facilities and products of any such approved supplier and to revoke its approval upon the supplier's failure to continue to meet any of Franchisor's thencurrent criteria. Nothing in the foregoing shall be construed to require Franchisor to approve any particular item or supplier.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a franchisee must obtain written approval from Baya Bar before using any unapproved equipment, products, services, or suppliers. The franchisee needs to submit a written request to Baya Bar for approval before utilizing the product, service, or supplier.
The document specifies that a Baya Bar franchisee cannot purchase or lease any item or use any supplier until written approval is granted by Baya Bar. Baya Bar has the right to inspect the supplier's facilities and test samples. The franchisee may be charged a fee to cover the costs of inspection and testing.
Baya Bar will notify the franchisee of its decision regarding the proposed item or supplier within thirty days after receiving all the necessary information for evaluation. Baya Bar also retains the right to re-inspect approved suppliers periodically and revoke approval if the supplier fails to meet the current criteria. However, Baya Bar is not obligated to approve any specific item or supplier.