What conditions may All States M.E.D. place on supplier approval?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Approval of a supplier may be conditioned on the supplier's ability to provide sufficient quantity of product; quality of products or services at competitive prices; production and delivery capability; and dependability and general reputation.
Nothing in this Section shall be construed to require Franchisor to approve any particular supplier, or to require Franchisor to make available to prospective suppliers, standards and specifications that Franchisor deems confidential.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, the approval of a supplier may be subject to certain conditions. These conditions include the supplier's ability to provide a sufficient quantity of the product, the quality of their products or services at competitive prices, their production and delivery capabilities, and their dependability and general reputation. This means that All States M.E.D. assesses potential suppliers based on their capacity to meet demand, offer competitive pricing without compromising quality, maintain reliable production and delivery schedules, and possess a trustworthy reputation.
For a prospective All States M.E.D. franchisee, this implies that they may need to seek approval from All States M.E.D. for suppliers not already on the approved list. If a franchisee wishes to use products, services, or new technology that All States M.E.D. hasn't already approved, the franchisee must provide sufficient information, specifications, and samples to All States M.E.D. for evaluation. The franchisee is responsible for covering all expenses incurred by All States M.E.D. during this approval process, up to a maximum of $1,000.00.
All States M.E.D. will then decide within a reasonable time, typically 30 days after receiving the necessary information, whether the franchisee can proceed with the purchase or lease from the proposed supplier. However, All States M.E.D. is not obligated to approve any specific supplier or to disclose confidential standards and specifications to potential suppliers. This protects All States M.E.D.'s interests and maintains the uniformity and quality control within the franchise system.
This process ensures that all suppliers meet All States M.E.D.'s standards for quality, reliability, and pricing, which ultimately protects the brand's reputation and the interests of all franchisees. Franchisees should be prepared to justify their choice of alternative suppliers and bear the associated costs for approval.