What is the cost to a Crisp & Green franchisee for using an unapproved supplier per day?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
native Suppliers or Brands**
If you propose to use any brand and/or supplier which is not then approved by us, you must first notify us and submit sufficient information, specifications and samples concerning such brand and/or supplier so that we can decide whether such brand complies with our specifications and standards and/or such supplier meets our approved supplier criteria. You must pay us a $2,500 fee at the time you submit any request to approve an unapproved supplier or product as reasonable fees to cover our investigation costs. We will notify you of our decision within a reasonable period of time. We may prescribe procedures for the submission of requests for approval and impose obligations on suppliers, which we may require be incorporated in a written agreement. We may impose limits on the number of suppliers (which may include us or our affiliates) and/or brands for any of the foregoing items. In the event you use any brand or supplier that is not then approved by us, we may charge you up to $1,500 per day until s
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–31)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee may be charged up to $1,500 per day for using a brand or supplier that has not been approved by the company. This penalty continues until the unauthorized use stops.
Before using an unapproved supplier, a Crisp & Green franchisee must first seek approval from the company. This requires submitting sufficient information, specifications, and samples for review. Additionally, the franchisee must pay a $2,500 fee to cover the investigation costs associated with the approval request. Crisp & Green will then notify the franchisee of their decision within a reasonable timeframe.
This policy highlights the importance of adhering to Crisp & Green's approved supplier list to maintain quality control and system uniformity. The potential $1,500 daily charge serves as a significant deterrent against using unauthorized suppliers, emphasizing the need for franchisees to gain prior approval for any alternative sources. Franchisees should carefully consider these costs and procedures when making purchasing decisions for their Crisp & Green location.