If a Boulder Designs franchisee proposes to purchase items from an unapproved source, what must they do?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
You must comply with our specifications for brands and types of equipment used in your Franchised Business. If you propose to purchase any items for use in your Franchised Business from an unapproved source for which we have identified, designated, or approved supplier(s), you must request our approval first. We may require, as a condition of granting approval that our representative(s) be permitted to inspect the supplier's facilities, and that information, specifications, and samples as we reasonably request be delivered to us for testing. We will notify you within 90 days of your request as to whether we approve the supplier or product. If no approval is received within 90 days, it is deemed denied. Upon written acceptance and approval by us of services or products and suppliers submitted for inclusion on the Approved Suppliers List and Approved Supplies List, you will be free to purchase such service or product from such approved supplier. We may revise our Approved Supplier and Approved Supplies Lists.
We apply the following general criteria in designating a proposed supplier as an approved source: (1) ability to provide the service or product to our quality specifications; (2) production and delivery capability; (3) minimum standards for safety; (4) integrity of the supplier; and (5) legality of the product or company.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, if a franchisee wants to purchase items for their franchised business from a supplier that Boulder Designs has not already approved, they must first request approval from Boulder Designs. This is to ensure that all products and services used in the Boulder Designs business meet the franchisor's standards and specifications.
As part of the approval process, Boulder Designs may require the franchisee to allow its representatives to inspect the supplier's facilities. Additionally, Boulder Designs can request information, specifications, and samples from the supplier for testing purposes. Boulder Designs will then notify the franchisee of its decision within 90 days of the request. If the franchisee does not receive approval within this 90-day period, the request is considered denied.
If Boulder Designs approves the supplier and the products or services, the supplier will be added to the Approved Suppliers List and Approved Supplies List, and the franchisee will then be permitted to purchase from that supplier. Boulder Designs retains the right to revise these lists at any time. The general criteria Boulder Designs uses to evaluate a proposed supplier include their ability to meet quality specifications, production and delivery capability, safety standards, integrity, and the legality of their products and company.
This process is a fairly standard practice in franchising, allowing Boulder Designs to maintain consistency and quality across all its franchise locations. It is important for prospective franchisees to understand these requirements and plan accordingly, as using unapproved suppliers without prior authorization is likely a breach of the franchise agreement.