factual

For Baya Bar, what is the procedure for a supplier to request approval?

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 Baya Bar's 2024 Franchise Disclosure Document, if a franchisee wishes to purchase products from a supplier not already approved by Baya Bar, either the franchisee or the supplier must submit a written request for approval. The franchisee is responsible for reimbursing Baya Bar's reasonable costs for testing and inspection of the new product or supplier. Baya Bar emphasizes that written approval from them is mandatory before any purchases can be made from the unapproved supplier.

Baya Bar retains significant control over its supply chain. They can require their representatives to inspect the supplier's facilities and demand samples for testing, either by Baya Bar or an independent laboratory. Baya Bar also has the right to re-inspect approved suppliers and revoke approval if the supplier fails to meet their current standards. However, the approval procedure does not obligate Baya Bar to approve any particular supplier.

Baya Bar will provide a written notification within 30 days of receiving the approval request, indicating whether the product or supplier is approved or disapproved. Baya Bar is not required to disclose its criteria for product or supplier approval to either the franchisee or the supplier. Furthermore, Baya Bar is not obligated to approve any product or supplier if they believe 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 process highlights the importance of adhering to Baya Bar's approved supplier list to maintain quality and uniformity within the franchise system. Franchisees should be aware of these restrictions and approval procedures to avoid potential disruptions in their supply chain and ensure compliance with Baya Bar's standards.

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.