What criteria does Brain Balance use to evaluate a proposed alternate supplier?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
Although we generally do not approve alternate vendors for the above-listed goods and services, you may request our approval of an alternate supplier. You must provide us with a description of the item or service and identify the alternate supplier from whom you would like to purchase it. We have the right to require you to provide us with a sample of the item, or access to the service, at your cost, to enable us to evaluate it. We also have the right to require you to provide us with sufficient information about the proposed supplier to be able evaluate whether the supplier meets our criteria for having the capacity to meet our standards, adequate quality control, sound financial condition and business reputation, and capacity to adequately meet potential demand as a supplier. We will evaluate the proposed supplier when you have provided us with sufficient information. We will also evaluate whether it makes business sense to approve an alternate
supplier for the item or service you have identified. If we choose to, at our sole discretion, we will run the proposal past our franchisee advisory board. We will notify you within 30 days regarding whether we have approved your request for an approved supplier. There is no fee for our review.
We share the following criteria for approving suppliers with franchisees: We consider suppliers (i) who demonstrate to our continuing reasonable satisfaction the ability to meet our standards, specifications, and requirements for such items regarding quality, variety, service, safety, and health; (ii) who possess adequate quality control and capacity to supply the needs of all franchisees promptly and reliably; (iii) who are of a sound financial condition and business reputation; (iv) who will supply such items to a sufficient number of franchise owners to enable us economically to require compliance by the supplier with our standard specifications and requirements; and (v) who have been approved for such items in writing by us and not thereafter disapproved.
For goods or services for which we do not name required suppliers, you may purchase from any supplier, provided that the goods or services meet any criteria we have established. Our criteria for goods and services is listed in our Operations Manuals and may be modified by us through an update to the Operations Manuals at any time and for any reason.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 30–34)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, franchisees can request approval for alternate suppliers, although Brain Balance generally does not approve them for certain goods and services. To initiate this process, a franchisee must provide a description of the item or service and identify the proposed alternate supplier. Brain Balance has the right to request a sample of the item or access to the service for evaluation, at the franchisee's expense. They can also ask for sufficient information about the supplier to assess their capacity to meet Brain Balance's standards.
Brain Balance evaluates potential suppliers based on several criteria. These include the supplier's ability to consistently meet Brain Balance's standards, specifications, and requirements for quality, variety, service, safety, and health. The supplier must also demonstrate adequate quality control and the capacity to reliably and promptly meet the needs of all franchisees. Furthermore, Brain Balance assesses the supplier's financial condition and business reputation to ensure stability and trustworthiness.
Additionally, Brain Balance considers whether the supplier can serve a sufficient number of franchise owners, making it economically feasible for Brain Balance to enforce compliance with its standard specifications and requirements. Finally, the supplier must receive written approval from Brain Balance, which can be withdrawn if necessary. Brain Balance will also evaluate whether approving an alternate supplier makes overall business sense. The document states that Brain Balance may consult its franchisee advisory board and will notify the franchisee of its decision within 30 days, with no review fee.
For goods or services without specified suppliers, franchisees can purchase from any supplier, provided the goods or services meet Brain Balance's established criteria, which are detailed in the Operations Manuals and subject to change. This process ensures that even when franchisees source independently, they adhere to Brain Balance's standards for quality and consistency.