What is a 'system-wide supply contract' as it relates to Beyond Juicery Eatery franchises?
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, a 'system-wide supply contract' refers to an agreement that Beyond Juicery Eatery may enter into, exercising their business judgment, for all restaurants or a subset of restaurants within one or more geographic regions. These contracts are with suppliers of products, services, or equipment that all affiliate-owned and franchised restaurants in a specific geographic area will be required to purchase, use, or sell.
Upon notification of a system-wide supply contract, franchisees, Beyond Juicery Eatery, and all other franchised restaurants in the designated geographic area must purchase the specified product, service, or equipment only from the designated supplier. However, there is an exception: if a franchisee already has a non-terminable supply contract with another vendor for the same product, service, or equipment at the time of notification, the obligation to purchase from Beyond Juicery Eatery's designated supplier will not begin until the existing contract expires or is terminated.
Beyond Juicery Eatery does not guarantee that they will enter into any system-wide supply contracts or exclusive supply arrangements. Furthermore, even if such contracts are established, there is no assurance that franchisees would not be able to purchase the same products or services at a lower price from another supplier. Beyond Juicery Eatery retains the right to add to, modify, substitute, or discontinue system-wide supply contracts or exclusive supply arrangements based on their business judgment. This means that franchisees may be required to change suppliers or products based on Beyond Juicery Eatery's decisions, which could impact their costs and operations.