Under what circumstances will Casiola revoke approval of a previously approved supplier?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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 20–24)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola will revoke approval of a previously approved supplier if their standards fall below Casiola's designated standards. Casiola will then notify the franchisee in writing of the revocation of approval.
This means that as a Casiola franchisee, you are required to purchase or lease certain goods and services from suppliers that meet Casiola's standards. These are referred to as 'source restricted goods and services'. Casiola maintains a list of approved and designated suppliers in its manuals, and it will notify franchisees of any changes to these specifications or the list of approved suppliers.
Casiola may designate itself or its affiliates as exclusive suppliers, regardless of whether there are competing suppliers. If a franchisee wants to use a supplier not already approved, they must submit a written request for approval, which may include a supplier review and testing fee, samples for testing, documentation for evaluation, and potentially an inspection of the supplier's facilities. Casiola will then notify the franchisee of its decision within 60 days of receiving the request and all required information. Casiola has the discretion to withhold approval based on factors such as the supplier's ability to meet Casiola's standards, quality control, and whether the approval advances the overall interests of the Casiola system.