Does Better Blend have the sole discretion to approve or reject an alternative supplier?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Alternative Suppliers
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We have the sole discretion to approve or reject an alternative supplier. We may condition our approval on criteria we deem appropriate, such as evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product
testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval. There is no fee for us to review or approve an alternate supplier. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you, or by updating our Manual.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, Better Blend retains the sole discretion to approve or reject any alternative supplier proposed by a franchisee. If a franchisee wishes to use a supplier not already on Better Blend's approved list, they must submit a written request for approval. Better Blend may then impose conditions they deem appropriate, such as assessing the supplier's capacity, quality, financial stability, reputation, and reliability, as well as conducting inspections, product testing, and performance reviews.
Better Blend's criteria for approving suppliers are not disclosed to franchisees. Franchisees can only use alternative suppliers if they request and receive written approval from Better Blend. There is no fee for Better Blend to review an alternate supplier. Better Blend will provide written notification of approval or disapproval within 30 days of receiving the request.
Better Blend can grant or revoke supplier approvals by written notice to the franchisee or by updating their manual. This policy gives Better Blend significant control over the supply chain, ensuring brand consistency and quality control. However, it also means franchisees have limited autonomy in choosing suppliers and may be subject to Better Blend's potentially undisclosed criteria and changing requirements.
This level of control over suppliers is common in franchising, as franchisors seek to maintain uniform standards across all locations. Prospective Better Blend franchisees should carefully consider the implications of this restriction and discuss any concerns with existing franchisees during their due diligence. Understanding the approved supplier list and the process for requesting alternative suppliers is crucial for managing costs and ensuring a smooth operation.