factual

What factors does Burros Fries consider when approving vendors and suppliers?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

We base our approval of vendors and suppliers on our discretionary determination of demand, relevance to the System, price, value, quality, reliability, accuracy of product claims, safety, warranty, prompt attention to complaints, financial stability, litigation against supplier, recall history, reputation, frequency of delivery, appearance and contributions or other benefits to us and/or any marketing fund. Some of these specifications are contained in our Operations Manual and others will be set forth in periodic written notices to our franchisees. We have the right to disapprove any product, piece of kitchen equipment and/or supply sources that are not on our approved vendor list. If any product, piece of kitchen equipment, service, vendor or supplier is not authorized by us, you are prohibited

from using, offering or selling it. We may require vendors and/or suppliers to provide certain information, sign a nondisclosure agreement, and agree to guarantee our level of quality and produce sufficient samples to allow us to test the sample at your expense. We may require you to submit to us sufficient specifications, photographs, drawings or other information and samples to determine whether the items meet our specifications. There is a product, vendor and equipment assessment fee for supplier approval, and we may require third-party testing, in which case you will pay the actual cost of the tests as described in Item 6. We may issue specifications in manuals or directives, in writing or orally, and we may modify them at any time. Our response to a written request by you to approve a product (including a menu or retail item), piece of equipment or a supplier will be made within thirty (30) days after we receive it. Approval may be revoked in our sole discretion where an approved product (including any menu or retail item), piece of kitchen equipment, vendor or supplier does not adhere to the specifications described above. We will notify you either by email or any other written form of communication of our approval, disapproval or revocation of any prior approval of any product, kitchen equipment, vendor or supplier.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)

What This Means (2024 FDD)

According to Burros Fries's 2024 Franchise Disclosure Document, the company's approval of vendors and suppliers is based on its discretionary determination of several factors. These factors include demand, relevance to the Burros Fries system, price, value, quality, reliability, accuracy of product claims, safety, warranty, prompt attention to complaints, financial stability, litigation against the supplier, recall history, reputation, frequency of delivery, appearance, and contributions or other benefits to Burros Fries and/or any marketing fund. These standards and specifications may be found in the Operations Manual or in periodic written notices to franchisees.

Burros Fries retains the right to disapprove any product, piece of kitchen equipment, and/or supply sources that are not on its approved vendor list. Franchisees are prohibited from using, offering, or selling any product, piece of kitchen equipment, service, vendor, or supplier not authorized by Burros Fries. Vendors and/or suppliers may be required to provide certain information, sign a nondisclosure agreement, and guarantee the level of quality, as well as produce sufficient samples for testing at the franchisee's expense.

Prospective franchisees should note that Burros Fries may require them to submit specifications, photographs, drawings, or other information and samples to determine whether items meet their standards. There is a product, vendor, and equipment assessment fee for supplier approval, and third-party testing may be required, with the franchisee bearing the actual cost of the tests. Burros Fries will respond to a written request to approve a product, piece of equipment, or a supplier within thirty days after receiving it. Approval may be revoked if an approved product, piece of kitchen equipment, vendor, or supplier does not adhere to the specifications, and franchisees will be notified of any approval, disapproval, or revocation in writing.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.