How will Crab N Spice notify a franchisee of the approval or disapproval of a proposed supplier?
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, if a franchisee wants to use a supplier that is not already on the approved list, they must request approval in writing from Crab N Spice. Crab N Spice will then evaluate the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability, potentially including inspections, product testing, and performance reviews. While the specific criteria for approving suppliers are not disclosed to franchisees, Crab N Spice will provide written notification of the approval or disapproval of the proposed supplier within 30 days of receiving the franchisee's request. There is no fee for this review process.
Crab N Spice retains the right to grant or revoke supplier approvals. This notification can be delivered to the franchisee in writing or by updating the franchise's manual. This means that a franchisee could be informed of a change in approved suppliers either through a direct written notice or by checking for updates to the manual.
This policy is fairly standard in franchising, as franchisors need to maintain quality control and consistency across all locations. However, the lack of transparency regarding the specific criteria used to evaluate suppliers could be a concern for franchisees. It's important for prospective franchisees to understand that Crab N Spice has significant control over the supply chain and can change approved suppliers at its discretion. Franchisees should inquire about the typical reasons for supplier disapproval and the process for appealing such decisions.