Under what conditions can Bb.Q Chicken revoke its approval of a 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 Bb.Q Chicken's then-current standards. After receiving written notice from Bb.Q Chicken regarding the revocation, the franchisee must stop purchasing from that supplier. This allows Bb.Q Chicken to maintain quality control and uniformity within its franchise system.
For a prospective Bb.Q Chicken franchisee, this means that even if a supplier is initially approved, that approval is not permanent. Bb.Q Chicken can change its standards, and if the supplier doesn't meet the new standards, the franchisee will be required to find a new supplier. This could potentially disrupt the franchisee's supply chain and possibly increase costs if the new supplier charges higher prices. It is important to maintain good relationships with approved suppliers but also be aware of the potential for changes.
Bb.Q Chicken's supplier approval procedure does not obligate them to approve any particular supplier and they are not required to make available to franchisees or any supplier their criteria for product or supplier approval. Bb.Q Chicken 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 System. This gives Bb.Q Chicken significant discretion in choosing and maintaining its approved suppliers.
This level of control over suppliers is fairly common in franchising, as it helps to ensure brand consistency and quality. However, it's important for a prospective franchisee to understand the potential implications of these restrictions and to factor them into their business planning. A prospective franchisee should inquire about the frequency with which Bb.Q Chicken re-evaluates suppliers and the types of criteria used in the evaluation process.