Can Baya Bar require inspection of a potential supplier's facilities?
Baya_Bar Franchise · 2024 FDDAnswer 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, Baya Bar can require inspection of a potential supplier's facilities. Specifically, if a franchisee wishes to purchase from a supplier not previously approved by Baya Bar, they must request approval. As part of this process, Baya Bar can require that its representatives be permitted to inspect the supplier's facilities.
Baya Bar also has the right to re-inspect the facilities and products of any approved supplier and can revoke approval if the supplier fails to continue to meet Baya Bar's standards. However, Baya Bar's supplier approval procedure does not obligate them to approve any particular supplier. Baya Bar will notify the franchisee in writing within 30 days after receipt of the request for approval whether the proposed product or supplier is approved or disapproved.
Baya Bar is not required to make available to the franchisee or any supplier its criteria for product or supplier approval. Baya Bar is also not obligated to approve any specific product or supplier if they believe that approval of that product or supplier is not in the best interests of the Baya Bar system. Baya Bar may revoke prior approval of any product or supplier at any time, and the franchisee must stop using that product or purchasing from that supplier after receiving written notice from Baya Bar.