Is there a fee charged by Crab N Spice to review or approve an alternate 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, there is no fee for the franchisor to review or approve an alternate supplier. However, if a franchisee wants to use a supplier that is not on Crab N Spice's list of approved suppliers, they must request approval in writing.
Crab N Spice will grant or revoke approvals of suppliers based on criteria appropriate to the situation, including evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. The specific criteria for approving suppliers are not disclosed to franchisees. Crab N Spice is obligated to provide written notification of the approval or disapproval of any proposed supplier within 30 days after receipt of the franchisee's request.
Crab N Spice may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to the franchisee, or by updating their Manual. This means that while a franchisee may get a supplier approved, that approval is not permanent and can be revoked at any time. This policy allows Crab N Spice to maintain control over its supply chain and ensure consistent quality and standards across all franchise locations.