Is Crawlspace Medic required to approve any particular item or supplier?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee desires to purchase, lease or use any unapproved equipment, product, or service or to purchase, lease or use any equipment, product or service from an unapproved supplier, Franchisee shall submit to Franchisor a written request for such approval prior to utilizing such product, service or supplier.
Franchisee shall not purchase or lease any item or use any supplier until and unless such item or supplier has been approved in writing by Franchisor.
Franchisor shall have the right to require that its representatives be permitted to inspect the supplier's facilities and to test or otherwise evaluate samples from the supplier.
Franchisor reserves the right to charge Franchisee a fee equal to the actual cost and expense for inspection and testing.
Franchisor shall notify Franchisee whether Franchisor approves or disapproves of the proposed item or supplier within thirty (30) days after Franchisor receives all required information to evaluate the product, service or supplier.
Franchisor reserves the right, at its option, to re-inspect from time to time the facilities and products of any such approved supplier and to revoke its approval upon the supplier's failure to continue to meet any of Franchisor's thencurrent criteria.
Nothing in the foregoing shall be construed to require Franchisor to approve any particular item or supplier.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, while Crawlspace Medic maintains a system for approving suppliers and items, they are not obligated to approve any specific one. Franchisees who wish to use an unapproved supplier or item must first seek written approval from Crawlspace Medic. Crawlspace Medic has the right to inspect the supplier's facilities and test samples, potentially charging the franchisee for the costs associated with the inspection and testing. Crawlspace Medic will then notify the franchisee of their decision within 30 days of receiving all necessary information.
Crawlspace Medic also retains the right to re-inspect approved suppliers and revoke approval if they no longer meet the franchisor's standards. This process ensures that franchisees adhere to Crawlspace Medic's standards, but it also means that franchisees may face additional costs and delays if they choose to deviate from the approved list.
This policy is fairly common in franchising, as franchisors seek to maintain quality control and brand consistency. However, it's important for prospective Crawlspace Medic franchisees to understand that they may not always be able to choose their preferred suppliers or products and that they may incur costs if they seek approval for alternatives.