Can Beard Papas require an inspection of a potential supplier's facilities when a Beard Papas franchisee requests approval?
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 purchase or lease a source restricted item from a supplier not previously approved by Beard Papas, the franchisee must submit a written request for approval along with any information, samples, and testing data that Beard Papas may request. Beard Papas may charge a fee to cover the costs of reviewing the alternate supplier.
Beard Papas has the discretion to request samples from the supplier for testing and documentation for evaluation. Importantly, Beard Papas may also require an inspection of the supplier's facilities. Beard Papas will then notify the franchisee of their approval or disapproval within a reasonable time, not exceeding 60 days, after receiving the written request and all required information. However, Beard Papas retains the sole discretion to withhold approval.
Beard Papas does not disclose its specific procedures or criteria for approving suppliers to its franchisees. However, when evaluating a supplier, Beard Papas considers factors such as the supplier's ability to meet Beard Papas's standards, specifications, and production requirements, the supplier's quality control measures, and whether Beard Papas or its affiliates are the exclusive supplier of the item. Ultimately, Beard Papas will assess whether approving the supplier will advance the overall interests of the Beard Papas system and the company.