Who bears the cost of inspection and testing when a Buona franchisee seeks approval for an alternative supplier?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
If you desire to purchase any such items from an unapproved supplier, you or the supplier must submit to us a written request for approval. We may require, as a condition of approval, that our representatives be permitted to inspect the supplier's facilities, and that samples from the supplier be delivered either to us or an independent laboratory we designate for testing prior to granting approval. Either you or the supplier must pay a charge not to exceed our reasonable cost of inspection and the actual cost of testing. We will notify you of approval or disapproval of a supplier within approximately 30 days. We do not provide our criteria for approving suppliers to our franchisees. We may re-inspect the facilities and products of any approved supplier at any time and revoke our prior approval upon failure of such supplier to continue to meet our criteria for supplier approval.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–34)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, when a franchisee seeks approval for an alternative supplier, either the franchisee or the supplier is responsible for covering the costs associated with the inspection and testing. Specifically, the franchisee or the unapproved supplier must submit a written request for approval to Buona. As a condition of approval, Buona may require its representatives to inspect the supplier's facilities and request samples for testing, either by Buona or an independent laboratory.
The cost responsibility is clearly defined: either the franchisee or the supplier must pay a charge that does not exceed Buona's reasonable cost of inspection and the actual cost of testing. Buona aims to notify the franchisee of the approval or disapproval decision within approximately 30 days. However, Buona does not provide franchisees with the criteria used for approving suppliers.
Buona also retains the right to re-inspect the facilities and products of any approved supplier at any time and can revoke prior approval if the supplier fails to continue meeting Buona's criteria. This ongoing oversight ensures that all suppliers, even those previously approved, consistently meet Buona's standards. This policy is fairly standard in franchising, as franchisors need to maintain quality control and consistency across all locations. The franchisee bears the risk of paying for inspection and testing of a supplier that may ultimately be rejected.