What standards must suppliers meet to become and remain approved for Baya Bar?
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.
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.
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 must acquire all food, beverage, ingredients, supplies, materials, fixtures, furnishings, and equipment from suppliers who consistently meet Baya Bar's standards and specifications. These standards are detailed in the Baya Bar manual and may be updated, with written notice provided to franchisees.
If a franchisee wishes to use a product or supplier not already approved, they must submit a written request for approval, or the supplier must do so. The franchisee is responsible for reimbursing Baya Bar's costs for testing and inspection. Baya Bar may inspect the supplier's facilities and require samples for testing, either by Baya Bar or an independent lab. Approval is required in writing before any purchases can be made from the new supplier.
Baya Bar has the right to re-inspect approved suppliers and revoke approval if they fail to maintain the brand's standards. While Baya Bar will notify franchisees of approval or disapproval within 30 days of the request, the document states that Baya Bar is not obligated to disclose the criteria for approval and can deny approval if it is not in the best interest of the Baya Bar system. Baya Bar can also revoke prior approval at any time, requiring franchisees to cease using the product or supplier upon written notice.
Baya Bar estimates that purchases from approved suppliers or those conforming to their specifications will constitute approximately 54% to 60% of the franchisee's total purchases when establishing the franchise and 60% to 80% during the ongoing operation of the shop. This requirement ensures quality and uniformity across all Baya Bar locations, but it also limits the franchisee's autonomy in sourcing products and potentially impacts their profit margins if approved suppliers are more expensive.