Can Crepe De Licious revoke approval of an approved supplier?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
If you desire to offer additional items or services that we have not approved, or desire to purchase approved items and services from any supplier who we have not approved, we will consider any written request by you for approval of additional items, services or suppliers (although we are not obligated to approve any). You will be required to pay us for our costs incurred in any inspection or testing of any samples or any proposed new product, service or supplier nominated by you. We will notify you of our approval or disapproval of any new item, service or supplier requested by you within a reasonable time (usually within 90 days) after we have received all of the relevant information we requested. We may withhold approval of any item, service or supplier, as we determine in our discretion. We can revoke approval of an approved supplier at any time in our sole discretion, and we will notify you of any revocation of supplier approval.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, Crepe De Licious has the authority to revoke approval of any previously approved supplier. This action can be taken at any time and at Crepe De Licious's sole discretion. If Crepe De Licious revokes approval, they will notify the franchisee of the change.
This clause gives Crepe De Licious significant control over the supply chain. While franchisees can request approval for additional items, services, or suppliers, Crepe De Licious is not obligated to approve them. Franchisees are also responsible for covering any costs associated with the inspection or testing of new products, services, or suppliers they nominate. Crepe De Licious typically responds to these requests within 90 days of receiving all necessary information.
For a prospective Crepe De Licious franchisee, this means that while you can suggest suppliers, Crepe De Licious ultimately decides who you can purchase from. The ability to revoke approval at any time also introduces a risk that a supplier you rely on could be disallowed, potentially disrupting your operations. It would be prudent to inquire about the criteria Crepe De Licious uses to approve and revoke suppliers, as well as the typical reasons for revocation, to better understand this aspect of the franchise agreement.