How does Bombs Away's Item 8 restrictions on suppliers relate to the franchisee's obligations in Item 9?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
be honest and fair. Franchisee shall 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. Bombs Away Franchising has the right (but not the obligation) to collect payments from Franchisee on behalf of a vendor and remit the payments to the vendor, and to impose a reasonable markup or charge for administering the payment program.
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, Article 8 outlines the requirements for franchisees to acquire all necessary inputs according to the System Standards, which Bombs Away may modify. Bombs Away may require franchisees to purchase or lease inputs from specific sources, including Bombs Away itself, its designees, Required Vendors, or Approved Vendors. Franchisees can request approval for alternate vendors or inputs, but Bombs Away has the discretion to set criteria for approval, such as evaluations of the vendor's capacity, quality, financial stability, reputation, and reliability.
Article 9 stipulates that franchisees must obtain approval from Bombs Away for all marketing, advertising, and public relations activities. Bombs Away may operate social media accounts on behalf of the system or permit franchisees to operate their own accounts, subject to System Standards. Franchisees are required to implement marketing plans or campaigns determined by Bombs Away, and Bombs Away may use any marketing materials developed by or for the franchisee.
In essence, Item 8's supplier restrictions ensure that franchisees use approved sources for products and services, maintaining consistency and quality across the Bombs Away system. This directly relates to Item 9, which requires franchisees to adhere to Bombs Away's marketing standards and obtain approval for all marketing activities. By controlling both the inputs and the marketing, Bombs Away aims to maintain brand uniformity and protect its reputation. Franchisees must ensure their marketing efforts align with the approved products and vendors to comply with both articles of the franchise agreement.