Can Deck Medic withhold approval of a supplier at its discretion?
Deck_Medic Franchise · 2024 FDDAnswer 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, Deck Medic retains the discretion to withhold approval of a supplier. If a franchisee wants to purchase or lease a source restricted item from a supplier not already approved, they must submit a written request and any additional information Deck Medic requests. Deck Medic may also charge a supplier review and testing fee, request samples for evaluation, and inspect the supplier's facilities. Deck Medic will then notify the franchisee of their decision within a reasonable time, not exceeding 60 days, after receiving the request and all required information.
Deck Medic considers several factors when evaluating a supplier. These include the supplier's ability to meet Deck Medic's standards, specifications, and production requirements, the supplier's quality control measures, whether Deck Medic or its affiliates are the exclusive supplier of the item, and whether approving the supplier will advance the overall interests of the Deck Medic system.
This policy gives Deck Medic significant control over the supply chain, ensuring consistency and quality across all franchise locations. However, it also means that franchisees have limited flexibility in choosing suppliers and may be required to purchase from Deck Medic's designated suppliers, even if other options are available. This could potentially impact a franchisee's costs and profitability, especially if Deck Medic's approved suppliers are not the most competitive in the market. Franchisees should carefully consider these restrictions and their potential impact on their business before investing in a Deck Medic franchise.