factual

Who pays for the retesting of a Chicken Guy supplier to ensure continued compliance?

Chicken_Guy Franchise · 2025 FDD

Answer 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, the franchisee is responsible for covering the costs associated with the retesting of a supplier to ensure they continue to meet Chicken Guy's standards. Specifically, if a franchisee wants to use a supplier not already approved by Chicken Guy, they must request approval, potentially incurring fees for facility audits and reviews.

Chicken Guy retains the right to periodically mandate retesting of approved suppliers to guarantee ongoing compliance with their specifications. The financial burden of this retesting falls on the franchisee. This means that franchisees must factor in these potential retesting expenses when budgeting for their operational costs.

This requirement is fairly standard in franchising, as franchisors need to maintain consistent quality and safety across all locations. By placing the cost on the franchisee, Chicken Guy ensures that franchisees have a vested interest in the quality and compliance of their suppliers. It is important for prospective franchisees to discuss the typical frequency and estimated costs of these retesting procedures with Chicken Guy to better understand the financial implications.

Disclaimer: This information is extracted from the 2025 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.