Can Bb.Q Chicken designate itself as an approved supplier?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
of approved products and approved suppliers. We have the right to designate ourselves as approved suppliers in the future. If we are an approved supplier, we have the right to earn a profit on the sale of items to our franchisees. None of our officers has an ownership interest in any approved supplier. If it is discovered that you are not using designated or approved suppliers for your purchases of products used in the operation of your Franchised Business, or if you are not using designated or approved products, we will have the right to terminate your Franchise Agreement upon notice to you.
Designated Suppliers
You must purchase the required beverage machine from a designated supplier.
You must purchase products from or use the services of the following designated suppliers in the following categories:
Poultry:
Sysco Corporation 1032 Baugh Road Selma, North Carolina 27576 Phone: 866-755-5060
Web: www.sysco.com
or
Gordon Food Service 405 North Racine Avenue, Suite 107B Chicago, Illinois 60642 Phone: 800-968-6437
Equipment:
You are required to purchase, from us, all the equipment you are required to use and will need in the operation of your Franchised Business. We purchase all equipment on your behalf from the following designated suppliers:
Map Restaurant Supply 358-360 South Street Newark, New Jersey 07105
Phone: 973-578-4411
or
Action Sales 415 South Atlantic Boulevard Monterey Park, California 91754
Phone: 626-308-1988 Web: www.actionsales.com
We have the right to earn a profit for purchasing your equipment for your Franchised Business on your behalf. For the fiscal year ended December 31, 2024, we earned $2,872,548.72, or 5.4% of our total revenue, through equipment purchases with designated suppliers made on behalf of our franchisees.
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 travel charges and costs related to our testing and inspection (not to exceed $1,500). We must approve any supplier in writing before you make any purchases 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 we complete the inspection and evaluation process of our approval or disapproval of any proposed supplier. 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.
If we permit you to provide catering and/or delivery services, we have the right to require you to have temporary signage or "wraps" placed on each delivery vehicle. We expect that all delivery vehicles will be kept clean, in good working order and properly insured. You must require that each person providing those services comply with all laws, regulations and rules of the road and use due care and caution operating and maintaining the motor vehicles. Except as described in this paragraph, we do not have any standards or exercise control over any motor vehicle that you use. You are required to offer delivery from your Restaurant through third-party delivery services, and only through the third-party delivery services approved by us and listed in our Manual. If you provide delivery using a third-party service that is not approved by us and is not listed in our Manual, you will be charged our prohibited product or service fine.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–31)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, Bb.Q Chicken retains the right to designate itself as an approved supplier. This means that Bb.Q Chicken can become a direct supplier of food, beverages, ingredients, supplies, materials, fixtures, furnishings, equipment, and other products used at the franchised business. If Bb.Q Chicken chooses to become an approved supplier, it has the right to profit from the sale of these items to its franchisees. Currently, Bb.Q Chicken is not an approved supplier of any products or services to its franchisees.
This arrangement has several implications for prospective franchisees. First, franchisees are obligated to purchase the required beverage machine from a designated supplier. Second, franchisees must purchase products from or use the services of designated suppliers in specific categories such as poultry, where Sysco Corporation and Gordon Food Service are listed as designated suppliers. Additionally, franchisees are required to purchase all equipment from Bb.Q Chicken, who in turn purchases it from designated suppliers like Map Restaurant Supply and Action Sales. For the fiscal year ended December 31, 2024, Bb.Q Chicken earned $2,872,548.72, or 5.4% of its total revenue, through equipment purchases with designated suppliers made on behalf of its franchisees.
Bb.Q Chicken estimates that purchases from them or approved suppliers, or that conform to their specifications, will constitute approximately 80% to 90% of a franchisee's total purchases, both when establishing the franchise and during ongoing operations. Franchisees must seek approval for any products or suppliers not already approved, and may have to cover Bb.Q Chicken's travel and inspection costs, up to $1,500, for testing and evaluation. Bb.Q Chicken is not obligated to disclose its criteria for product or supplier approval and may revoke prior approvals at any time.
For the fiscal year ended December 31, 2024 Bb.Q Chicken earned $6,196,375.38, or 1.56% of its total revenue, from approved suppliers based on their sales of poultry products to their franchisees, $96,714.61 of which was earned from the sales of poultry from their designated supplier, Shamrock Foods. This revenue structure highlights the importance of supplier relationships and the potential financial benefits Bb.Q Chicken receives from these arrangements. Franchisees should be aware that Bb.Q Chicken may receive compensation from approved suppliers based on their dealings with franchisees, which could influence the selection of approved suppliers.