Does Crawlspace Medic have the right to inspect a potential supplier's facilities when a franchisee requests approval?
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 the 2024 Crawlspace Medic Franchise Disclosure Document, if a franchisee wants to use equipment, products, or services from a supplier not already approved, they must first get written approval from Crawlspace Medic. Crawlspace Medic has the right to inspect the facilities of the potential supplier and test samples from them.
Crawlspace Medic can charge the franchisee a fee to cover the costs of the inspection and testing. Crawlspace Medic will then notify the franchisee of their decision within 30 days of receiving all the necessary information to evaluate the potential supplier.
Even after approving a supplier, Crawlspace Medic can re-inspect the supplier's facilities and products periodically and can revoke approval if the supplier no longer meets Crawlspace Medic's standards. Crawlspace Medic is not obligated to approve any particular item or supplier.