Can Chicken Guy approve a supplier for only certain goods or materials?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Chicken Guy may approve one or more suppliers for any goods or materials and may approve a supplier only as to certain goods or materials.
Chicken Guy may concentrate purchases with one or more suppliers to obtain lower prices and/or the best advertising support and/or services for any group of Chicken Guy!
Restaurants or any other group of restaurants franchised or operated by Chicken Guy or its affiliates.
Approval of a supplier may be conditioned on requirements relating to the frequency of delivery, reporting capabilities, standards of service, including prompt attention to complaints, or other criteria, and concentration of purchases, as set forth above, and may be rescinded or provided on a temporary basis pending a further evaluation of such supplier by Chicken Guy.
Chicken Guy may establish commissaries and distribution facilities owned and operated by Chicken Guy or an affiliate that Chicken Guy shall designate as an approved supplier.
- (3) If Franchisee proposes to purchase any goods or materials (that Franchisee is not required to purchase from Chicken Guy, an affiliate of Chicken Guy or a designated supplier) from a supplier that Chicken Guy has not previously approved, Franchisee shall submit to Chicken Guy a written request for such approval, or shall request the supplier to do so itself.
Chicken Guy has the right to require, as a condition of its approval, that its representatives be permitted to inspect the supplier's facilities, and that such information, specifications and samples as Chicken Guy reasonably designates be delivered to Chicken Guy and/or to an independent, certified laboratory designated by Chicken Guy for testing prior to granting approval.
A charge not to exceed the Chicken Guy's actual costs of reviewing the supplier or distributor and auditing the facility, if needed, shall be paid by Franchisee.
Chicken Guy will notify Franchisee within 60 days of Franchisee's request as to whether Franchisee is authorized to purchase such products from that supplier.
Chicken Guy reserves the right, at its option, to re-inspect the facilities and products of any such approved supplier and to revoke its approval upon the suppliers' failure to continue to meet any of the foregoing criteria.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, Chicken Guy has the authority to approve suppliers for specific goods or materials rather than requiring a supplier to be approved for everything. This allows Chicken Guy to maintain control over the quality and consistency of its products while providing flexibility in sourcing. Chicken Guy may also concentrate purchases with select suppliers to potentially secure better pricing, advertising support, or services for its franchise network.
This approval process may involve conditions related to delivery frequency, reporting capabilities, service standards, and purchase volumes. Approvals can also be temporary while Chicken Guy evaluates a supplier. Chicken Guy can also establish its own commissaries and distribution facilities, or those of an affiliate, to act as approved suppliers.
If a franchisee wants to use a supplier not already approved by Chicken Guy, they must submit a written request for approval, or have the supplier do so. Chicken Guy can then inspect the supplier's facilities and request information, specifications, and samples for testing, potentially at the franchisee's expense. Chicken Guy will then notify the franchisee of its decision within 60 days. Chicken Guy also retains the right to re-inspect approved suppliers and revoke approval if they fail to meet the required criteria.
These stipulations ensure that Chicken Guy franchisees maintain sufficient inventory of approved goods and materials to meet the brand's standards. While this system aims to uphold quality and consistency, franchisees should be aware of the potential costs and time involved in seeking approval for new suppliers. They should also consider the possibility of approvals being rescinded if a supplier's performance falters.