May All County impose obligations on 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.
We or our affiliate may be approved suppliers for any items. We formulate and modify, at our sole business judgment, specifications and standards we impose on Franchisees and suppliers. Specifications and standards are issued to Franchisees through our Operations Manual and to suppliers by written agreement. Other than us, Kwikrents, Inc., and All County Property Management and Realty, Inc., there are no other suppliers to the Franchise Business in which any of our officers owns an interest.
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 right to impose obligations on approved suppliers. Specifically, All County may prescribe procedures for approval requests and incorporate obligations in a written license agreement with the supplier. All County may also seek reimbursement from the franchisee or the approved supplier for reasonable costs and expenses related to the approval process and ongoing monitoring of the supplier's compliance.
This means that if a franchisee suggests a new supplier, All County can place requirements on that supplier as a condition of approval. These requirements could cover various aspects of the supplier's operations, such as quality control, reporting, or adherence to specific standards. The costs associated with ensuring the supplier meets All County's standards can be passed on to either the franchisee or the supplier themselves.
All County also retains the right to monitor the quality of goods or services provided by approved suppliers and can terminate any supplier who fails to meet their standards. Furthermore, All County can disapprove a previously approved supplier, preventing franchisees from ordering from that supplier in the future. This gives All County significant control over the supply chain and the quality of products and services used by its franchisees.
All County also states that they or their affiliates may be approved suppliers for any items. They formulate and modify specifications and standards imposed on franchisees and suppliers, communicating these through the Operations Manual and written agreements. Besides All County, Kwikrents, Inc., and All County Property Management and Realty, Inc., there are no other suppliers to the Franchise Business in which any of their officers owns an interest.