Who is responsible for paying the costs associated with Beauty Bungalows investigating an alternative supplier?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
receive any amounts from our suppliers.
If you would like to purchase required items from another supplier (other than our designated supplier), you may request our approval by submitting a written request for an evaluation of the alternative product or supplier. Based on the information and samples you supply to us, we will test the items supplied and review the proposed supplier's business reputation, delivery performance, credit rating and other information. You will be required to pay our actual costs incurred by us in investigating the supplier or vendor. The additional costs are estimated to be between $1,000 and $2,000 but may be more. The costs will include time, travel and materials associated with our reasonable efforts to investigate, inspect, test, and do reasonable due diligence on the proposed supplier or vendor. We expect to complete our review and advise you of our decision within 30 days after you submit the required information. The specifications and standards for these required purchases are in the Manual. We reserve the right to disapprove any previously approved vendor whose performance falls below our standards. We will make any approvals of new vendors or revoke approval of vendors in writing based on the vendor's credit worthiness, delivery standards, and cost and will incorporate our decision in the Manual. The specifications and standards for th
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, a franchisee is responsible for covering the costs associated with the franchisor's investigation of an alternative supplier. If a franchisee wishes to purchase required items from a supplier other than Beauty Bungalows's designated supplier, they must submit a written request for evaluation.
Beauty Bungalows will then test the items, review the supplier's business reputation, delivery performance, and credit rating. The franchisee is required to pay Beauty Bungalows's actual costs incurred during this investigation. These costs are estimated to be between $1,000 and $2,000 but may be higher depending on the extent of the investigation.
The costs cover time, travel, and materials related to investigating, inspecting, testing, and conducting due diligence on the proposed supplier. Beauty Bungalows aims to complete the review and inform the franchisee of their decision within 30 days after receiving the necessary information. This policy ensures that Beauty Bungalows maintains control over the quality and standards of products used within its franchise system, while placing the financial burden of investigating alternative suppliers on the franchisee.