How will Crown Gold Exchange notify a franchisee of the approval or disapproval of a proposed supplier?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We will grant or revoke approvals of suppliers based on criteria appropriate to the situation, which may include evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval. There is no fee for us to review or approve an alternate supplier. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you, or by updating our Manual.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, if a franchisee wishes to use a supplier not already on the approved list, they must request approval in writing from Crown Gold Exchange. Crown Gold Exchange will then evaluate the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability, potentially including inspections, product testing, and performance reviews. It is important to note that Crown Gold Exchange's specific criteria for approving suppliers are not disclosed to franchisees.
Crown Gold Exchange will provide written notification to the franchisee regarding the approval or disapproval of the proposed supplier within 30 days of receiving the request. This notification will be in writing.
Crown Gold Exchange retains the right to grant new supplier approvals or revoke existing ones. This can be done either through direct written notice to the franchisee or by updating the Brand Standards Manual. This means franchisees need to stay informed of any changes to approved suppliers, as these changes may not always be communicated directly.
There is no fee charged by Crown Gold Exchange for reviewing or approving an alternate supplier. This is a benefit to franchisees as some franchisors charge a fee for reviewing and approving new suppliers.