What must a Casiola franchisee do if they want to purchase a source restricted item from a non-approved supplier?
Casiola 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 supplier review and testing fee and 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. 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 supplier's 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 supplier's approval, in our sole determination, will allow us to advance the overall interests of the System.
We estimate that your purchase of goods and services from suppliers according to our specifications, including your purchase of goods or services from our designated exclusive suppliers to represent approximately 90% of your total purchases and leases in establishing the Franchised Business and approximately 20% of the on-going operating expenses of the Franchised Business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, franchisees must adhere to specific procedures if they wish to purchase or lease source-restricted items from suppliers not already approved by Casiola. A "source restricted item" is any good or service that must meet Casiola's standards and be acquired from an approved or designated supplier.
To seek approval for a new supplier, a Casiola franchisee must submit a written request to Casiola, along with any additional information that Casiola may require. Casiola may also charge a supplier review and testing fee. Casiola might request samples from the supplier for testing and documentation for evaluation. Additionally, Casiola reserves the right to inspect the supplier's facilities.
Casiola will then notify the franchisee of its decision, either approving or disapproving the supplier, within a reasonable timeframe not exceeding 60 days after receiving the written request, additional information, and samples. However, Casiola retains the discretion to withhold approval. In evaluating a supplier, Casiola considers factors such as the supplier's ability to meet Casiola's standards, specifications, and production requirements, the supplier's quality control measures, whether Casiola or its affiliates are exclusive suppliers of the item, and whether approving the supplier would advance the overall interests of the Casiola system.
Casiola estimates that approximately 90% of the initial purchases and leases for establishing the franchised business and about 20% of the ongoing operating expenses will involve source-restricted goods and services. This highlights the importance of understanding and complying with Casiola's supplier restrictions and approval processes.