If Beyond Juicery Eatery enters into a system-wide supply contract, what is the franchisee's obligation?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in the exercise of our business judgment, enter into supply contracts for all Restaurants or a subset of Restaurants situated within one (1) or more geographic regions (each, a "system-wide supply contract").
We may enter into system-wide supply contracts with one or more suppliers of products, services, equipment that all affiliateowned and franchised Restaurants in a geographic area will be required to purchase, use, or sell.
If we do so, then immediately upon notification, you, us and all other franchise Restaurants in the geographic area must purchase the specified product, service, or equipment only from the Designated Supplier.
However, if at the time of our notification, you are already a party to a nonterminable supply contract with another supplier or vendor for the product, service, or equipment, then your obligation to purchase from our Designated Supplier under the system-wide supply contract will not begin until the scheduled expiration (or earlier termination) of your pre-existing supply contract.
We make no representation that we will enter into any system-wide supply contracts or other exclusive supply arrangements or, if we do so, that you would not otherwise be able to purchase the same products and/or services at a lower price from another supplier.
We may add to, modify, substitute, or discontinue system-wide supply contracts or exclusive supply arrangements in the exercise of our business judgment.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, if Beyond Juicery Eatery enters into a system-wide supply contract, franchisees, along with Beyond Juicery Eatery itself and all other franchised restaurants in the specified geographic area, must purchase the designated products, services, or equipment exclusively from the designated supplier. This obligation begins immediately upon notification of the system-wide supply contract.
However, there is an exception: if a franchisee is already bound by a non-terminable supply contract with another vendor for the same product, service, or equipment at the time of notification, the franchisee's obligation to purchase from Beyond Juicery Eatery's designated supplier will be deferred. It will commence only upon the expiration or earlier termination of the franchisee's pre-existing supply contract.
Beyond Juicery Eatery makes no guarantees that it will enter into any system-wide supply contracts or exclusive supply arrangements. Furthermore, even if such contracts are established, Beyond Juicery Eatery does not assure franchisees that they will not be able to find the same products or services at a lower price from alternative suppliers. Beyond Juicery Eatery also retains the right to modify, substitute, or discontinue these system-wide supply contracts or exclusive supply arrangements at its discretion.