Does Buns On Fire have the right to inspect a proposed supplier's facilities?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to purchase products subject to our approved supplier requirements from a supplier who has not been previously approved by us, then you must, at your expense, send to us representative samples or specifications of that supplier's products or services, and certain other information about the supplier's products and business that we may request. We will also have the right to inspect the supplier's facilities and otherwise evaluate the proposed supplier and its products or services, and you must reimburse us for the expenses we incur to inspect and evaluate the supplier. Within thirty (30) days after receiving the necessary samples and information, we will notify you in writing as to whether the supplier's products or services comply with the uniformity requirements, quality standards and specifications established by us, and whether the supplier's business reputation, delivery performance, credit rating and other relevant information are satisfactory. If we do not respond in this time period, the supplier shall be deemed disapproved. The criteria for supplier approval are available to franchisees upon request. We reserve the right to approve or disapprove any requested supplier for any reason or no reason in our sole discretion.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Buns On Fire retains the right to inspect a proposed supplier's facilities. If a franchisee wants to purchase products from a supplier not already approved by Buns On Fire, the franchisee must submit samples, specifications, and other requested information about the supplier's products and business.
Buns On Fire has the right to inspect the supplier's facilities and evaluate the supplier and its products or services. The franchisee is responsible for reimbursing Buns On Fire for the expenses incurred during the inspection and evaluation. Buns On Fire will then notify the franchisee in writing within thirty days whether the supplier's products or services comply with their standards and specifications, and whether the supplier's business reputation, delivery performance, credit rating, and other relevant information are satisfactory. If Buns On Fire does not respond within this 30-day period, the supplier is deemed disapproved.
Buns On Fire reserves the right to approve or disapprove any requested supplier for any reason, at their sole discretion. This process ensures that all suppliers meet Buns On Fire's standards, maintaining uniformity and quality across all franchise locations. This requirement also allows Buns On Fire to control the supply chain and potentially negotiate better deals with suppliers, although the FDD states that they may use any rebates or compensation received from suppliers for any purpose they deem appropriate.