Does All States M.E.D. have written criteria for approving alternative suppliers?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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Alternative Suppliers:
We do not maintain written criteria for approving suppliers and thus these criteria are not available to you or your proposed supplier. We do permit you to contract with alternative suppliers if approved by us and they meet our criteria. We charge any costs incurred, up to $1,000, to test another supplier that you propose. If you wish to propose to us another supplier, you may submit the proposed supplier that you wish for us to consider in writing. Your request must include sufficient specifications, photographs, drawings and other information and samples to enable us to determine whether supplier meets our specifications. Your request must also provide confirmation that the supplier is financially sound and carries adequate liability insurance. We will examine the quality of the items and the supplier's ability to supply a sufficient quantity in a timely way with good customer service to determine whether to consider adding the supplier to our list of approved vendors. We will notify you within 30 days if we approve or disapprove of an alternative supplier. If we revoke approval for a supplier
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–21)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, they do not maintain written criteria for approving alternative suppliers. However, All States M.E.D. does permit franchisees to contract with alternative suppliers if they are approved by All States M.E.D. and meet their criteria.
If a franchisee wishes to propose an alternative supplier, they must submit a written request including sufficient specifications, photographs, drawings, and other information and samples to enable All States M.E.D. to determine whether the supplier meets their specifications. The request must also provide confirmation that the supplier is financially sound and carries adequate liability insurance. All States M.E.D. will examine the quality of the items and the supplier's ability to supply a sufficient quantity in a timely way with good customer service to determine whether to consider adding the supplier to their list of approved vendors. All States M.E.D. will notify the franchisee within 30 days if they approve or disapprove of an alternative supplier. If All States M.E.D. revokes approval for a supplier, they will provide written notice to the franchisee.
All States M.E.D. charges any costs incurred, up to $1,000, to test another supplier that a franchisee proposes. This means that while franchisees are not strictly limited to pre-approved suppliers, they must go through an approval process and bear the costs of testing if they want to use a different supplier. This could add extra time and expense to the franchisee's operations, especially if they are seeking specialized or cost-effective supplies.
Franchisees should inquire about the specific unwritten criteria All States M.E.D. uses to evaluate alternative suppliers to better understand the requirements and increase the likelihood of approval. Understanding these criteria, even if unwritten, will help franchisees make informed decisions about potential suppliers and manage their costs effectively.