Does Bombs Away's right to disapprove a supplier constitute a designation of a source?

According to Bombs Away's 2024 Franchise Disclosure Document, franchisees may request approval of alternate vendors if they are required to purchase a particular input only from an Approved Vendor or Required Vendor. To do so, the franchisee must submit a written request for approval along with any information, specifications, and/or samples requested by Bombs Away. Bombs Away may condition its approval on criteria it deems appropriate, including evaluations of the vendor's capacity, quality, financial stability, reputation, and reliability; inspections; product testing; and performance reviews. Bombs Away will provide written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of the franchisee's request.

This process indicates that while Bombs Away maintains control over its supply chain by requiring franchisees to purchase inputs from approved or required vendors, franchisees have the option to seek approval for alternate vendors. Bombs Away has the right to disapprove a supplier, but this right is balanced by the franchisee's ability to request an alternate vendor.

For a prospective Bombs Away franchisee, this means they are not entirely locked into using only Bombs Away's designated suppliers. If a franchisee finds a vendor that offers better pricing, quality, or service, they can formally request approval to use that vendor. However, approval is not guaranteed and depends on Bombs Away's assessment of the vendor against its established criteria. Franchisees should be prepared to provide comprehensive documentation and samples to support their request. This process ensures that Bombs Away maintains standards across its franchise system while allowing franchisees some flexibility in sourcing their inputs.