Can Baya Bar require samples from a potential supplier for testing?
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 has specific requirements regarding the approval of products and suppliers. If a franchisee wishes to purchase or use products from a supplier not previously approved by Baya Bar, they must submit a written request for approval. Baya Bar can also require the supplier to submit this request. The franchisee is responsible for reimbursing Baya Bar's reasonable costs for testing and inspection of the new product or supplier.
Baya Bar can require that its representatives inspect a potential supplier's facilities and that samples from the supplier be delivered for testing, either to Baya Bar or to an independent laboratory. Baya Bar retains the right to re-inspect approved suppliers and their products and can revoke approval if the supplier fails to meet Baya Bar's current 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 of receiving the approval request whether the proposed product or 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 product or supplier if it believes that doing so would not be in the best interests of the Baya Bar system. Baya Bar can revoke prior approval of any product or supplier at any time, and the franchisee must stop using the product or purchasing from the supplier upon receiving written notice of the revocation.