Are the criteria Crab N Spice uses for approving suppliers available to franchisees?
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 a list of approved suppliers. Seasonings and branded apparel must be purchased directly from Crab N Spice. If a franchisee wishes to use a supplier not already on the approved list, they must request written approval from Crab N Spice.
Crab N Spice will evaluate potential suppliers based on criteria such as capacity, quality, financial stability, reputation, and reliability, as well as inspections, product testing, and performance reviews. However, the FDD states explicitly that Crab N Spice's criteria for approving suppliers are not available to franchisees. Crab N Spice will provide written notification of approval or disapproval within 30 days of the request. Approvals can be granted or revoked via written notice or updates to the manual.
This lack of transparency regarding supplier approval criteria could pose challenges for franchisees. Without knowing the specific standards, it may be difficult for a franchisee to find and propose alternative suppliers that meet Crab N Spice's requirements. This could limit their options and potentially impact their costs or ability to source specific products. Franchisees should discuss this with Crab N Spice to understand the practical aspects of suggesting new suppliers and what factors are most critical in the approval process.