How does Aplus provide franchisees with a list of approved suppliers?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor shall provide Franchisee, in the Manual or other written or electronic form, with a list of approved suppliers, which may be Franchisor or its affiliate, manufacturers, distributors, and other sources who demonstrate to Franchisor's continuing, reasonable satisfaction the ability to meet Franchisor's uniform standards and specifications and who possess adequate quality controls and capacity to supply Franchisee's needs promptly and reliably ("Approved Suppliers").
Franchisor shall further provide franchisee in the Manual or other written or electronic form, with a list of specifications for some or all of the supplies, furniture, fixtures, inventory, equipment and other approved or specified items and services, and Franchisor may from time to time revise such list.
If Franchisor or an Affiliate is an Approved Supplier, Franchisee shall execute a standard form purchase, supply, and/or lease agreement for the items to be supplied by Franchisor or its Affiliate.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus will provide franchisees with a list of approved suppliers in the Manual or other written or electronic form. These suppliers, which may include Aplus itself or its affiliates, consist of manufacturers, distributors, and other sources that Aplus deems capable of meeting its standards and specifications. These suppliers must also demonstrate adequate quality controls and the capacity to reliably and promptly supply the franchisee's needs.
In addition to providing a list of approved suppliers, Aplus will also furnish franchisees with a list of specifications for supplies, furniture, fixtures, inventory, equipment, and other approved items and services. Aplus retains the right to revise this list from time to time. If Aplus or one of its affiliates is an approved supplier, the franchisee is required to execute a standard purchase, supply, or lease agreement for the items provided.
It is important to note that Aplus retains the right to review and revoke its approval of any items or suppliers at any time by notifying the franchisee and/or the supplier. If approval is revoked, the franchisee must promptly cease using, selling, or providing any disapproved items or services at their own expense. Franchisees may also be required to purchase up to 90% of their total inventory and cigarette purchases from approved suppliers or designated specific suppliers, as part of a buying group imposed by Aplus.
While Aplus approves these products, suppliers, or services, neither Aplus nor its affiliates offer any warranties, including merchantability for any particular purpose, regarding fixtures, furniture, equipment, computer systems, supplies, or other approved items. This means the franchisee bears the risk related to the quality and suitability of these items, even if they are required to purchase them from Aplus-approved sources.