Does Crisp & Green have an obligation to approve any supplier or brand proposed by a franchisee?
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 such unauthorized use ceases.
We apply the following general criteria in approving a proposed supplier or brand: (i) the ability to make products or provide services in conformity with our specifications; (ii) the reputation and integrity of the supplier or brand; (iii) the financial condition and insurance coverage of the supplier; and (iv) System uniformity. Determinations of whether a supplier or brand meets our specifications and quality and safety standards will be made by us in our sole discretion. We have no obligation to approve any supplier or brand. We may limit the number of approved suppliers or brands with whom you may deal, designate sources that you must use, and/or refuse any of your requests for any reason, including that we have already designated an exclusive source (which in the future might be us or our affiliate) for a particular product or service or if we believe that doing so is in the best interests of the System. We are not required to make available to you or to any supplier our criteria for product or supplier approval if we deem such
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, Crisp & Green has no obligation to approve any supplier or brand proposed by a franchisee. However, if a franchisee proposes to use a brand or supplier not already approved, they must notify Crisp & Green and submit sufficient information, specifications, and samples for review. A fee of $2,500 is required at the time of the request to cover investigation costs. Crisp & Green will then notify the franchisee of their decision within a reasonable time frame.
Crisp & Green may prescribe procedures for submission, impose obligations on suppliers, and set limits on the number of suppliers or brands for any items. Using a brand or supplier not approved by Crisp & Green can result in a charge of up to $1,500 per day until the unauthorized use stops.
Crisp & Green applies general criteria in approving a proposed supplier or brand, including the ability to meet specifications, the supplier's reputation and integrity, their financial condition and insurance coverage, and System uniformity. Determinations are made at Crisp & Green's sole discretion, and they may refuse requests for any reason, including having an exclusive source already designated or believing it is in the best interest of the System. Crisp & Green is not required to disclose their criteria for product or supplier approval if they deem it confidential. This means a franchisee cannot force Crisp & Green to approve a supplier, even if the supplier meets certain objective standards.