May All County impose limits on the number of approved suppliers?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
We may prescribe procedures for the submission of requests for approval and impose obligations on approved suppliers, which will be incorporated in a written license agreement with the supplier. We may obtain from you and/or the approved supplier's reimbursement of our reasonable costs and expenses incurred in the approval process and on-going monitoring of the supplier's compliance with our requirements. We do not act as an agent, representative or in any other intermediary or fiduciary capacity for you in our relationship with an alternative supplier you propose and we approve. We may impose limits on the number of approved suppliers. We have the right to monitor the quality of goods or services provided by approved suppliers in a manner we deem appropriate and may terminate any supplier who does not meet our quality standards and specifications, as may be periodically in effect. We may disapprove any supplier whom we previously approved, and you may not, after receipt of notice of disapproval, reorder from any supplier we have disapproved.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 16–19)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County has the authority to impose limits on the number of approved suppliers. This means that while franchisees can propose suppliers, All County ultimately decides which suppliers are approved and how many will be on the approved list. This control allows All County to manage quality and consistency across its franchise system.
All County evaluates proposed suppliers based on factors such as price, service, and quality. The evaluation process can take up to 90 days, during which All County may request detailed information and specifications from the proposed supplier. While All County states that approval will not be unreasonably withheld, they retain the right to approve or disapprove any supplier, or approve a supplier conditionally.
All County also has the right to monitor the quality of goods and services provided by approved suppliers and may terminate any supplier who does not meet their standards. Franchisees must cease ordering from any supplier that All County has disapproved. This system ensures that franchisees adhere to All County's standards, but it also limits the franchisee's autonomy in choosing suppliers.
For a prospective franchisee, this means that while they can suggest suppliers, All County has significant control over the supply chain. Franchisees should carefully consider the implications of these restrictions and discuss any concerns with All County before signing the Franchise Agreement. Understanding the criteria for supplier approval and the process for proposing new suppliers is crucial for managing costs and maintaining operational flexibility.