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What happens if a Caring Senior Service franchisee purchases from an unapproved supplier?

Caring_Senior_Service Franchise · 2025 FDD

Answer from 2025 FDD Document

You must purchase all products, materials and supplies only from distributors and other suppliers approved by us from time to time.

  • (ii) We may approve a single distributor or other supplier (collectively "supplier") for any product and may approve a supplier only as to certain products.

We may concentrate purchases with one (1) or more suppliers to obtain lower prices or the best advertising support or services for any group of Businesses.

We may, if we choose, take advantage of discounts offered by a supplier in connection with the acquisition of large quantities of products and resell said products to you at a profit.

Approval of a supplier may be conditioned on requirements relating to the frequency of delivery, concentration of purchases, standards of service, including prompt attention to complaints, or other criteria and may be temporary, pending our continued evaluation of the supplier from time to time.

  • (iii) If you desire to purchase any unapproved items or from any unapproved supplier, you must submit to us a written request for approval of the proposed product or supplier and obtain our written approval of the product or supplier prior to purchasing any such items from said supplier.

We may inspect the proposed supplier's facilities and require product samples from the proposed supplier to be delivered at our option either directly to us or to any independent entity which we designate for testing, which testing or evaluation and ultimate approval or rejection shall be completed within thirty (30) days of submission.

We reserve the right to periodically re-inspect the facilities and products of any approved supplier and to revoke our approval if the supplier does not continue to meet any of our criteria.

We reserve the right to require you to reimburse our costs related to any such inspection or evaluation.

We shall in no event be obligated to approve any proposed supplier;

Source: Item 23 — RECEIPTS (FDD pages 53–204)

What This Means (2025 FDD)

According to Caring Senior Service's 2025 Franchise Disclosure Document, franchisees must purchase all products, materials, and supplies only from approved distributors and suppliers. If a franchisee wants to purchase unapproved items or purchase from an unapproved supplier, they must submit a written request for approval and receive written approval from Caring Senior Service before making any purchases from that supplier.

Caring Senior Service has the right to inspect the proposed supplier's facilities and require product samples, which can be delivered either directly to them or to an independent entity they designate for testing. This testing and evaluation process, leading to approval or rejection, will be completed within 30 days of submission. Caring Senior Service also reserves the right to periodically re-inspect the facilities and products of any approved supplier and can revoke approval if the supplier fails to meet their criteria. The franchisee may be required to reimburse Caring Senior Service for the costs associated with any inspection or evaluation. However, Caring Senior Service is not obligated to approve any proposed supplier.

This requirement ensures that franchisees maintain the quality and standards set by Caring Senior Service. By controlling the supply chain, Caring Senior Service aims to maintain uniformity and protect its brand reputation. This also allows Caring Senior Service to potentially negotiate better pricing or support services by concentrating purchases with specific suppliers. While this benefits the overall system, it limits the franchisee's autonomy in choosing suppliers and potentially finding more cost-effective options on their own.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.