Does the All States M.E.D. franchisee bear the expense of the franchisor's review of a new product or service?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
ies, furniture, fixtures, inventory, equipment and other approved or specified items and services, and Franchisor may from time to time issue revisions to such list. If Franchisor or an Affiliate is an Approved Supplier, Franchisee shall execute a standard form purchase or supply agreement for the items to be supplied by Franchisor or its Affiliate. If Franchisee desires to utilize any products, services or new technology that Franchisor has not approved (for products and services that require supplier approval), Franchisee shall first send Franchisor sufficient information, specifications and samples for Franchisor to determine whether the service or product complies with its standards and specifications or whether the supplier meets its Approved Supplier criteria. Franchisee shall bear all expenses incurred by Franchisor in connection with determining whether it shall approve an item, service or supplier, not to exceed $1,000.00. Franchisor will decide within a reasonable time (usually thirty [30] days) after receiving the required information whether Franchisee may purchase or lease such items or services or from such supplier. Approval of a supplier may be conditioned on the supplier's ability to provide sufficient quantity of product; quality of prod
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, if a franchisee wants to use products, services, or new technology that All States M.E.D. hasn't approved, the franchisee must first give All States M.E.D. enough information, specifications, and samples. This allows All States M.E.D. to check if the service or product meets their standards or if the supplier meets their criteria for approved suppliers.
The franchisee is responsible for covering all the expenses All States M.E.D. incurs while deciding whether to approve a new item, service, or supplier. This cost will not exceed $1,000.00.
All States M.E.D. will then decide within a reasonable time, typically 30 days after getting the necessary information, whether the franchisee can buy or lease the items or services from the supplier. Approving a supplier might depend on their ability to provide enough product, the quality of their products or services at competitive prices, their production and delivery capabilities, and their overall dependability and reputation. All States M.E.D. is not required to approve any specific supplier or to share confidential standards and specifications with potential suppliers.