How long does Chicken Guy have to notify a franchisee about the approval of a proposed supplier?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
If you propose to purchase any goods or materials (that you are not required to purchase from us, our affiliates or designated suppliers) from a supplier that we have not previously approved, you must submit to us a written request for such approval, or you must request that the supplier do so. We will provide our standards and specifications to you or to the proposed supplier, subject to the supplier's execution of a confidentiality agreement in a form acceptable to us. We have the right to require, as a condition of approval, that our representatives be permitted to inspect the supplier's facilities and that such information, specifications and samples as we reasonably designate be delivered to us and/or to an independent, certified laboratory designated by us for testing prior to granting approval. In addition to product testing, a facility audit may be required. A fee not to exceed our actual costs of reviewing the supplier or distributor and auditing the facility, if needed, may be charged by us and shall be paid by you. We will notify you within 60 days after receipt of your request as to whether you are authorized to purchase such products from that supplier, and if such authorization is granted, you may contract with the approved supplier. We may periodically require that the testing be performed again at your expense to ensure continued compliance with our specifications.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, if a franchisee proposes a new supplier for goods or materials not already sourced from Chicken Guy, its affiliates, or designated suppliers, Chicken Guy has 60 days to respond to the request. Within this timeframe, Chicken Guy will notify the franchisee whether they are authorized to purchase from the proposed supplier. If approved, the franchisee can then contract with the supplier.
Chicken Guy may require the franchisee or the proposed supplier to submit a written request for approval. Chicken Guy can provide its standards and specifications to the supplier, contingent upon the supplier signing a confidentiality agreement. As part of the approval process, Chicken Guy has the right to inspect the supplier's facilities and request information, specifications, and samples for testing, potentially through an independent, certified laboratory. A facility audit may also be necessary.
The franchisee is responsible for covering Chicken Guy's actual costs for reviewing the supplier and auditing the facility, if required. Furthermore, Chicken Guy may periodically mandate repeat testing at the franchisee's expense to ensure ongoing compliance with their specifications. This process ensures that all suppliers meet Chicken Guy's standards, maintaining consistency and quality across all franchise locations.