What criteria might Crab N Spice use to approve or revoke suppliers?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We will grant or revoke approvals of suppliers based on criteria appropriate to the situation, which may include evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval. There is no fee for us to review or approve an alternate supplier. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you, or by updating our Manual.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–19)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, franchisees are required to purchase food products and supplies from the franchisor's approved suppliers. Seasonings and branded apparel must be purchased directly from Crab N Spice. If a franchisee wishes to use an alternative supplier, they must seek written approval from Crab N Spice.
Crab N Spice will assess potential suppliers based on criteria they deem appropriate, including evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability. They may also conduct inspections, product testing, and performance reviews. It is important to note that Crab N Spice's specific criteria for approving suppliers are not disclosed to franchisees.
Crab N Spice will provide written notification of approval or disapproval within 30 days of the request. Approvals of new suppliers or revocations of past approvals can be issued to franchisees via written notice or by updating the franchise's manual. Crab N Spice also issues specifications and standards for applicable aspects of the franchise in their manual and/or in written directives, and these can be modified at any time.