Under what conditions may Chicken Guy rescind approval of a supplier?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
We may approve one or more suppliers or distributors for any goods or materials, and we may approve a supplier or distributor only as to certain goods or materials. Approval of a supplier or a distributor may be conditioned on requirements relating to the frequency of delivery, reporting capabilities, standards of service, including prompt attention to complaints, sanitation standards, facility standards, insurance and other quality assurance requirements or other criteria, and concentration of purchases, as set forth above, and such approval may be rescinded or provided on a temporary basis pending our further evaluation of the supplier.
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According to Chicken Guy's 2025 Franchise Disclosure Document, the approval of a supplier or distributor can be rescinded under specific conditions. Chicken Guy may approve a supplier or distributor for certain goods or materials, but this approval is conditional. The approval may depend on requirements such as the frequency of delivery, reporting capabilities, standards of service (including prompt attention to complaints), sanitation standards, facility standards, insurance, other quality assurance requirements, criteria, and concentration of purchases.
Chicken Guy retains the right to revoke approval of a supplier if these conditions are not met or if further evaluation of the supplier warrants it. The approval may also be provided on a temporary basis while Chicken Guy conducts its evaluation. This allows Chicken Guy to maintain control over the quality and standards of products used in its restaurants.
This provision is typical in franchising, as franchisors need to ensure consistency and quality across all locations. For a prospective Chicken Guy franchisee, this means that relying on unapproved suppliers is not an option, and approved suppliers can be removed if they fail to meet Chicken Guy's standards. It is important to maintain good relationships with approved suppliers and ensure they continue to meet the required standards to avoid any disruption to the supply chain.