What conditions might Chicken Guy place on the approval of a supplier?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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prompt attention to complaints, or other criteria, and concentration of purchases, as set forth above, and may be rescinded or provided on a temporary basis pending a further evaluation of such supplier by Chicken Guy.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 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 may place certain conditions on the approval of suppliers. These conditions can relate to the frequency of delivery, reporting capabilities, and standards of service, including how promptly the supplier addresses complaints. Chicken Guy may also consider the concentration of purchases when approving a supplier.
Chicken Guy retains the right to inspect a potential supplier's facilities and require them to provide information, specifications, and samples for testing, potentially by an independent, certified laboratory. The franchisee may be charged a fee, not exceeding Chicken Guy's actual costs, for reviewing the supplier and auditing the facility, if needed. Chicken Guy will then notify the franchisee within 60 days whether the supplier is approved.
Chicken Guy also reserves the right to re-inspect the facilities and products of any approved supplier and to revoke its approval if the supplier fails to continue meeting the established criteria. This ensures ongoing compliance with Chicken Guy's standards and specifications. These stipulations are put in place to maintain the quality and consistency of products used in Chicken Guy restaurants.