factual

If a Baya Bar franchisee wishes to use a supplier not previously approved, what must they do?

Baya_Bar Franchise · 2024 FDD

Answer from 2024 FDD Document

If you wish to purchase, lease or use any products that we have not previously approved, or purchase or lease from a supplier we have not previously approved, you must submit a written request for approval or you must request the supplier to do so. You must reimburse our reasonable costs related to our testing and inspection. We must approve any product or supplier in writing before you make any purchases of that product or from that supplier. We can require that our representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered, either to us or to an independent laboratory, for testing. 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 the 2024 Baya Bar Franchise Disclosure Document, if a franchisee wants to purchase from a supplier not already approved by Baya Bar, they must first submit a written request for approval. Alternatively, the supplier can submit the request themselves. The franchisee is responsible for reimbursing Baya Bar's reasonable costs for testing and inspection of the new supplier.

Baya Bar must provide written approval before any purchases are made from the new supplier. Baya Bar has the right to inspect the supplier's facilities and request samples for testing, either directly or through an independent laboratory. While Baya Bar outlines a supplier approval procedure, it does not guarantee approval of any specific supplier.

Baya Bar will notify the franchisee in writing within 30 days of receiving the request whether the supplier is approved or disapproved. Baya Bar is not obligated to disclose its criteria for supplier approval and may reject a supplier if it believes approval is not in the best interest of the Baya Bar system. Baya Bar also retains the right to revoke prior approval of any supplier, requiring the franchisee to cease purchases from that supplier upon written notice.

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.