Who is responsible for paying the charges associated with Aplus's inspection and testing of a proposed supplier?
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, if a franchisee wants to purchase items from a supplier that is not already approved, either the franchisee or the proposed supplier may be responsible for paying the costs of inspection and testing. Aplus has the final say on whether to approve a supplier.
To become an approved supplier, the supplier must meet Aplus's standards and specifications, have adequate quality controls, and be able to reliably supply the franchisee's needs. Aplus may inspect the supplier's facilities and require samples for testing. The cost of this inspection and testing will not exceed the reasonable costs incurred by Aplus.
It is important to note that Aplus can re-inspect any supplier at any time and revoke approval if the supplier no longer meets Aplus's quality standards. All approved suppliers must sign an agreement to protect Aplus from any liabilities related to the supplier's products, actions, or services. Aplus is not bound by any specific timeframe to approve or disapprove a supplier.