Can Bombs Away Franchising change the status of any vendor?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
comply with any code of ethics or statement of values from Bombs Away Franchising. Franchisee shall not take any action which may injure the goodwill associated with the Marks.
ARTICLE 8. SUPPLIERS AND VENDORS
- 8.1 Generally. Franchisee shall acquire all Inputs required by Bombs Away Franchising from time to time in accordance with System Standards. Bombs Away Franchising may require Franchisee to purchase or lease any Inputs from Bombs Away Franchising, Bombs Away Franchising's designee, Required Vendors, Approved Vendors, and/or under Bombs Away Franchising's specifications. Bombs Away Franchising may change any such requirement or change the status of any vendor. To make such requirement or change effective, Bombs Away Franchising shall issue the appropriate System Standards.
- 8.2 Alternate Vendor Approval. If Bombs Away Franchising requires Franchisee to purchase a particular Input only from an Approved Vendor or Required Vendor, and Franchisee desires to purchase the Input from another vendor, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by Bombs Away Franchising. Bombs Away Franchising may condition its approval on such criteria as Bombs Away Franchising deems appropriate, which may include evaluations of the vendor's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Bombs Away Franchising will provide Franchisee with written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of Franchisee's request.
- 8.3 Alternate Input Approval. If Bombs Away Franchising requires Franchisee to purchase a particular Input, and Franchisee desires to purchase an alternate to the Input, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by Bombs Away Franchising. Bombs Away Franchising will provide Franchisee with written notification of the approval or disapproval of any proposed alternate Input within 30 days after receipt of Franchisee's request.
- 8.4 Purchasing. Bombs Away Franchising may negotiate prices and terms with vendors on behalf of the System. Bombs Away Franchising may receive rebates, payments, or other consideration from vendors in connection with purchases by franchisees.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising has the authority to modify the status of any vendor. This means Bombs Away can alter a vendor's designation, potentially affecting whether franchisees are required or permitted to use them. Bombs Away Franchising will communicate these changes through System Standards.
If Bombs Away requires franchisees to purchase inputs from specific vendors (Approved or Required Vendors) and a franchisee wants to use a different vendor, the franchisee must seek approval from Bombs Away Franchising. The approval process may involve Bombs Away evaluating the proposed vendor's capacity, quality, financial stability, reputation, and reliability, as well as conducting inspections, product testing, and performance reviews. Bombs Away Franchising will provide a written notification of approval or disapproval within 30 days of receiving the franchisee's request.
Similarly, if a franchisee wishes to use an alternate input, they must also request approval from Bombs Away Franchising, who will then provide written notification of approval or disapproval within 30 days. This process ensures that Bombs Away maintains control over the quality and consistency of products used within the franchise system. This also allows Bombs Away to negotiate prices and terms with vendors on behalf of the entire system and to receive rebates or other consideration from vendors based on franchisee purchases.
Bombs Away Franchising is not liable for any claims or losses related to products or services provided by Approved or Required Vendors, including defects, delays, or unavailability. Franchisees are responsible for complying with product recalls or notifications regarding defective or dangerous items, at their own expense.