Who has discretion over the approval of suppliers not already approved for the Aplus franchise?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
If you desire to purchase any of the items specified in this Item 8 from a supplier that is not an Approved Supplier, you or the supplier must submit to us a written request for approval. We have sole discretion over the approval of such suppliers. At a minimum they must demonstrate the ability to meet our standards and specifications and possess adequate quality controls and capacity to supply your needs promptly and reliably. We may inspect the proposed supplier's facilities, and require that we receive samples from the proposed supplier for testing prior to granting or denying approval. We may impose a charge that does not exceed the reasonable costs of our inspection and testing. This charge may be paid by you or the proposed supplier. We may re-inspect the facilities and products of any supplier at any time, and may revoke the prior approval if we determine that the supplier does not meet the quality standard that is consistent with the favorable public image of the APLUS Program. The APLUS Agreement imposes no time period in which we are required to exercise our right of approval or disapproval. All suppliers approved by us are required to sign an agreement indemnifying us for the supplier's products, actions andservices.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS & SERVICES (FDD pages 33–37)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus has sole discretion over the approval of suppliers that are not already approved. If a franchisee desires to purchase items specified in Item 8 from a supplier that is not on the approved list, either the franchisee or the supplier must submit a written request for approval to Aplus.
To gain approval, the supplier must demonstrate the ability to meet Aplus's standards and specifications, possess adequate quality controls, and have the capacity to supply the franchisee's needs promptly and reliably. Aplus may inspect the proposed supplier's facilities and require samples for testing before granting or denying approval. The franchisee or the proposed supplier may be charged a fee to cover the reasonable costs of inspection and testing.
Aplus retains the right to re-inspect a supplier's facilities and products at any time and may revoke prior approval if the supplier fails to meet the quality standards consistent with the Aplus program's public image. The Aplus Agreement does not specify a time period within which Aplus must exercise its right of approval or disapproval. Approved suppliers must sign an agreement indemnifying Aplus for the supplier's products, actions, and services.
This requirement ensures that Aplus maintains control over the quality and consistency of products sold in its stores, protecting the brand's reputation. However, it also means that franchisees are limited to purchasing from approved suppliers or undergoing the approval process for new suppliers, which could potentially add costs and delays.