factual

How long does Deck Medic have to notify a franchisee of the approval or disapproval of a new supplier?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information that we may request. We may charge you a supplier review and testing fee and we may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time, not to exceed 60 days, after we receive your written request for approval and all additional information and samples that we may request. We may, in our discretion, withhold our approval. When evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the suppliers quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the suppliers approval, in our sole determination, will allow us to advance the overall interests of the System.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)

What This Means (2024 FDD)

According to Deck Medic's 2024 Franchise Disclosure Document, if a franchisee wants to purchase or lease a source restricted item from a supplier not previously approved, they must submit a written request. Deck Medic will then notify the franchisee of their approval or disapproval within a reasonable time, not exceeding 60 days. This timeframe begins after Deck Medic receives the written request, all additional information, and any requested samples.

This 60-day limit provides a defined window for Deck Medic to evaluate a proposed new supplier. Deck Medic may charge a supplier review and testing fee, request samples for testing, documentation for evaluation, and may also inspect the supplier's facilities. Deck Medic has the discretion to withhold approval based on factors such as the supplier's ability to meet Deck Medic's standards, quality control, and whether approving the supplier advances the overall interests of the Deck Medic system.

For a prospective Deck Medic franchisee, this means that introducing a new supplier requires a formal process with a potential waiting period of up to 60 days. The franchisee should factor in this timeframe when planning their sourcing and inventory management. Additionally, the potential for review fees and the possibility of disapproval should be considered when evaluating alternative suppliers. This process ensures that all suppliers meet Deck Medic's standards, maintaining consistency and quality across the franchise system.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.