Can C3 Wellness Spa charge a fee for reviewing an alternate supplier requested by a franchisee?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information that we may request. We may charge you a fee equal to the costs and expenses that we incur in reviewing and/or evaluating an alternate supplier, product, and/or service requested by you. We may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time, not to exceed 60 days after we receive your written request for approval and all additional information and samples that we may request. We may, in our discretion, withhold our approval. We do not make our procedures or criteria for approving suppliers available to our System franchisees, except that when evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the suppliers quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the suppliers approval, in our sole determination, will allow us to advance the overall interests of the System. If we have previously approved a supplier, and their standards fall below our designated standards, we will revoke our approval. We will notify you in writing of us revoking our approval.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, if a franchisee wants to purchase or lease a source-restricted item from a supplier not already approved by C3 Wellness Spa, the franchisee must submit a written request for approval along with any additional information requested by C3 Wellness Spa. C3 Wellness Spa may charge a fee to cover the costs and expenses it incurs while reviewing and evaluating the alternate supplier, product, or service.
This process may involve C3 Wellness Spa requesting samples from the supplier for testing, documentation for evaluation, and potentially an inspection of the supplier's facilities. C3 Wellness Spa will then notify the franchisee of its decision within a reasonable time, not exceeding 60 days after receiving the written request and all required information. However, C3 Wellness Spa retains the discretion to withhold approval.
C3 Wellness Spa does not disclose its specific procedures or criteria for approving suppliers to its franchisees. However, when evaluating a supplier, C3 Wellness Spa considers factors such as the supplier's ability to meet its standards, specifications, and production requirements, the supplier's quality control measures, whether C3 Wellness Spa or its affiliates are the exclusive supplier of the item, and whether approving the supplier will advance the overall interests of the C3 Wellness Spa system. If a previously approved supplier's standards decline, C3 Wellness Spa reserves the right to revoke its approval and will notify the franchisee in writing.