Is Baya Bar obligated to approve any particular supplier through its supplier approval procedure?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
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's supplier approval procedure does not obligate them to approve any particular supplier. If a franchisee wishes to purchase or lease products from a supplier not previously approved, they must submit a written request for approval, or the supplier must do so. The franchisee is responsible for reimbursing Baya Bar's reasonable costs for testing and inspection. Baya Bar must provide written approval before any purchases are made from the new supplier.
Baya Bar can require inspections of the supplier's facilities and samples for testing, either by Baya Bar or an independent lab. They retain the right to re-inspect facilities and products and can revoke approval if the supplier fails to meet current standards. Baya Bar will notify the franchisee in writing within 30 days of the approval request whether the supplier is approved or disapproved.
Baya Bar is not required to disclose its criteria for product or supplier approval and is not obligated to approve a supplier if it believes it is not in the best interest of the Baya Bar system. Baya Bar can revoke prior approval of any product or supplier with written notice, after which the franchisee must cease using the product or purchasing from the supplier. This gives Baya Bar significant control over the supply chain and allows them to maintain quality and uniformity across all franchise locations.