factual

What happens if Baya Bar revokes approval of a supplier?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

We have the right to re-inspect the facilities and products of any approved supplier and to revoke our approval if the supplier fails to continue to meet any of our then-current standards. Our supplier approval procedure does not obligate us to approve any particular supplier. We will notify you in writing within 30 days after receipt of your request for our approval whether the proposed product or supplier is, in fact, approved or disapproved. We are not required to make available to you or to any supplier our criteria for product or supplier approval. We are not obligated to approve any specific product or supplier if we believe that approval of that product or supplier is not in the best interests of the System. We may revoke our prior approval of any product or supplier at any time, and after your receipt of written notice from us regarding our revocation you must stop using that product or stop purchasing from that supplier.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)

What This Means (2024 FDD)

According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar has the right to re-inspect the facilities and products of any approved supplier and to revoke its approval if the supplier fails to continue to meet any of Baya Bar's then-current standards. If Baya Bar revokes a supplier's approval, Baya Bar will provide written notice to the franchisee. After receiving this notice, the franchisee must stop using the product from the revoked supplier or stop purchasing from that supplier.

This means that as a Baya Bar franchisee, you are subject to Baya Bar's approved supplier list. Baya Bar can change this list at any time. If a supplier is removed from the approved list, you must immediately cease using their products. This could potentially disrupt your supply chain and require you to find a new supplier quickly.

It is important to maintain a good relationship with approved suppliers and stay informed about any changes to the approved supplier list. This will help you avoid any disruptions to your business and ensure that you are always using products that meet Baya Bar's standards. As a franchisee, you do not have the right to use a supplier that is not approved by Baya Bar.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.