Can Bb.Q Chicken revoke approval of an equipment supplier?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 has the right to re-inspect the facilities and products of any approved supplier and to revoke its approval if the supplier fails to continue to meet any of their then-current standards. After receiving written notice from Bb.Q Chicken regarding the revocation, a franchisee must stop purchasing from that supplier. This ensures that all suppliers meet Bb.Q Chicken's standards.
This policy has significant implications for prospective Bb.Q Chicken franchisees. While franchisees have the option to request approval for new suppliers, Bb.Q Chicken is 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 Bb.Q Chicken system. Bb.Q Chicken may limit the number of approved suppliers with whom franchisees may deal and may designate sources that franchisees must use for some or all products, equipment, and services.
Bb.Q Chicken estimates that purchases from them or approved suppliers, or that must conform to their specifications, will represent approximately 80% to 90% of a franchisee's total purchases in establishing the Franchised Business, and approximately 80% to 90% of their total purchases in the continuing operation of the Franchised Business. For the fiscal year ended December 31, 2024, Bb.Q Chicken earned $2,872,548.72, or 5.4% of their total revenue, through equipment purchases with designated suppliers made on behalf of their franchisees. This demonstrates the importance of supplier relationships to Bb.Q Chicken's revenue model and the importance of using only approved suppliers to the franchisee's business.