Can Chicken Guy rescind 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prompt attention to complaints, or other criteria, and concentration of purchases, as set forth above, and may be rescinded or provided on a temporary basis pending a further evaluation of such supplier by Chicken Guy.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 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 the 2025 Chicken Guy FDD, Chicken Guy has the authority to rescind supplier approval under certain conditions. Chicken Guy may approve suppliers for specific goods or materials and may concentrate purchases with select suppliers to potentially secure better pricing, advertising support, or services for its restaurants.
The approval of a supplier by Chicken Guy can be conditional, hinging on factors such as delivery frequency, reporting capabilities, service standards (including addressing complaints), or purchase concentration. This approval may be rescinded or granted temporarily while Chicken Guy conducts further evaluations of the supplier. Chicken Guy also retains the right to re-inspect the facilities and products of any approved supplier and can revoke approval if the supplier fails to continue meeting the established criteria.
For a prospective Chicken Guy franchisee, this means that the suppliers they are permitted to use can change. Franchisees must stay informed about the current list of approved suppliers and be prepared to switch suppliers if Chicken Guy revokes approval from a previously approved source. This ensures that all Chicken Guy restaurants maintain consistent quality and standards, but it also means franchisees have limited control over their supply chain and must adapt to changes made by the franchisor.