What items must Baya Bar franchisees obtain solely from approved suppliers?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
to our specifications.
Approved Suppliers
You must obtain all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment (including point of sale system and communication systems), and other products used or offered for sale at the Shop solely from suppliers who demonstrate, to our continuing reasonable satisfaction, the ability to meet our then-current standards or in accordance with our standards and specifications. A complete list of our approved products and suppliers will be included in the Manual and is subject to change over time. We will provide you notice in the Manual or otherwise in writing (such as via email) of any changes to the lists of approved products and approved suppliers.
Vuda Media S Corp is our designated supplier for web and social media management and branding. Vuda Media S Corp is located at 8701 Shore Road, Brooklyn, New York, 11209, and 917-232-8239. You must use their services for all required web and social media marketing. Square, Inc. is the designated supplier for Square POS which is the designated point of sale system and you must use Square POS for your point of sale system. Square, Inc. is located at 1455 Market Street, Suite 600, San Francisco, California, 94103, and www.squareup.com.
Currently neither we nor any affiliate of ours is an approved supplier for any product or service you must purchase or lease, but we may become an approved or designated supplier in the future. If we or an affiliate are an approved or designated supplier, we may earn a profit from the sale of items and services to our franchisees. None of our officers has an ownership interest in any approved supplier, except William Loesch has an ownership interest in Vuda Media S Corp.
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, franchisees are required to purchase specific items from approved suppliers. These include all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, and equipment, including the point of sale (POS) system and communication systems. Other products used or offered for sale at the Baya Bar shop must also be sourced from these approved suppliers. The FDD specifies that Vuda Media S Corp must be used for web and social media management and branding, and Square, Inc. must be used for the Square POS system. Additionally, franchisees must purchase cold pressed juice, coconut flakes, Nutella, granola, coconut milk, coconut water, peanut and almond butter, cacao nibs, chia and flax seeds, goji berries, bee pollen, milk products, hemp granola, cookie butter and frozen fruits from Baya Bar's approved suppliers. For proprietary acai, pitaya and coconut blends, franchisees must use Happy Fruit as the designated supplier.
This requirement ensures that Baya Bar maintains consistent quality and standards across all franchise locations. The list of approved products and suppliers is included in the Manual and is subject to change, with Baya Bar providing written notice of any changes. While currently neither Baya Bar nor its affiliates are approved suppliers for most items, this may change in the future, potentially allowing Baya Bar to profit from sales to franchisees.
Franchisees have the option to request approval for new products or suppliers not already on the approved list, but they must cover the costs associated with testing and inspection. Baya Bar retains the right to inspect supplier facilities and revoke approval if standards are not maintained. Compliance with these sourcing requirements is a factor in Baya Bar's decisions regarding franchise renewals or the granting of additional franchises. The FDD estimates that purchases from approved suppliers or those conforming to Baya Bar's specifications will constitute a significant portion of a franchisee's total purchases, ranging from 54% to 60% during the establishment phase and 60% to 80% during ongoing operations.