What factors does Beard Papas consider when evaluating the approval of a particular supplier for Beard Papas franchisees?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information, samples, and testing data that we may request. We may charge you a fee equal to the costs and expenses that we incur in reviewing and evaluating an alternate supplier, product, and/or service requested by you. We may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time not exceeding 60 days after we receive your written request and all additional information and samples that we request. We may, in our sole discretion, withhold our approval. We do not make our procedures or criteria for approving suppliers available to our System franchisees, except that when evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the supplier's quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the supplier's approval, in our sole determination, will allow us to advance the overall interests of the System and our company.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–29)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, if a franchisee wants to use a supplier not already approved, they must submit a written request with information, samples, and testing data. Beard Papas may charge a fee to evaluate the proposed supplier, product, or service. They may also request samples for testing and documentation for evaluation, and they may inspect the supplier's facilities. Beard Papas will notify the franchisee of their decision within 60 days of receiving the request and all required information. However, Beard Papas retains the sole discretion to withhold approval.
When evaluating a supplier, Beard Papas considers several factors. These include the supplier's ability to meet Beard Papas's standards, specifications, and production requirements. The franchisor also assesses the supplier's quality control measures.
Additionally, Beard Papas considers whether they or their affiliates would be the exclusive supplier of the item if the new supplier were approved. Finally, Beard Papas evaluates whether approving the supplier would advance the overall interests of the Beard Papas system and the company. These criteria allow Beard Papas to maintain consistency and quality across all franchise locations while also protecting its own financial interests and strategic goals.