Who is responsible for paying the costs associated with the inspection and testing of a potential new supplier for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
With that exception, if you wish to purchase, lease, or use any Operating Asset from a supplier we have not approved, you must submit a written request for approval, or must ask the supplier to do so. You must permit our representatives to inspect the supplier's facilities and that samples from the supplier be delivered to us or to an independent laboratory for testing. You or the supplier must pay the cost of the inspection and the cost of the test. This procedure does not obligate us to approve any particular supplier. We will notify you of our approval or disapproval of any proposed supplier within 15 days after we complete our inspection and evaluation process. We reserve the right to re-inspect the facilities and products of any approved supplier and to revoke our approval if the supplier fails to continue to meet our standards. We may revoke our approval of any supplier at any time and may designate ourselves, our affiliate, or a third party as the exclusive source for any particular item. We do not provide our criteria for approving the suppliers to our franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–28)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, if a franchisee wishes to use a supplier not already approved by Cicis, either the franchisee or the supplier must cover the costs associated with the inspection and testing of that potential new supplier. Specifically, the franchisee must allow Cicis' representatives to inspect the supplier's facilities and ensure that samples are delivered for testing, either to Cicis or to an independent laboratory.
This means that as a prospective Cicis franchisee, you cannot independently choose suppliers. If you want to use a different supplier than those already approved, you will have to request approval and bear the financial burden of the inspection and testing. This cost could vary significantly depending on the nature of the products or services provided by the supplier and the complexity of the required testing.
It is important to note that Cicis retains the right to re-inspect approved suppliers and revoke approval if they fail to meet Cicis' standards. Cicis also reserves the right to designate themselves, an affiliate, or a third party as the exclusive source for any particular item. This gives Cicis significant control over the supply chain and limits the franchisee's autonomy in choosing suppliers. Franchisees should consider these restrictions and potential costs when evaluating the Cicis franchise opportunity.
Furthermore, Cicis does not provide its criteria for approving suppliers to franchisees, making it difficult for a franchisee to assess whether a proposed supplier is likely to be approved. This lack of transparency could make it challenging for franchisees to find alternative suppliers that meet Cicis' requirements and could lead to wasted expenses on inspections and tests for suppliers that are ultimately rejected.