Under what conditions can Deer Solution withhold approval of a proposed new supplier?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 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. If we have previously approved a supplier, and their standards fall below our designated standards, we will revoke our approval. We will notify you in writing of us revoking our approval.
We estimate that your purchase of goods and services from suppliers according to our specifications, including your purchase of goods or services from our designated exclusive suppliers, to represent approximately 80% of your total purchases and leases in establishing the Franchised Business and approximately 40% of the on-going operating expenses of your Franchised Business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–27)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, if a franchisee wants to purchase or lease a source restricted item from a supplier not already approved, they must submit a written request with any additional information Deer Solution requests. Deer Solution will then notify the franchisee of approval or disapproval within 60 days. Deer Solution may charge a supplier review and testing fee and may request that the franchisee send samples from the supplier for testing and documentation from the supplier for evaluation. Deer Solution may also require an inspection of the supplier's facilities.
Deer Solution may withhold approval of a supplier at their discretion. When evaluating a supplier, Deer Solution considers whether the supplier can meet their standards, specifications, and production requirements to their satisfaction. They also consider the supplier's quality control, whether Deer Solution or its affiliates are the exclusive supplier of the item, and whether approving the supplier will advance the overall interests of the Deer Solution system.
If Deer Solution has previously approved a supplier but their standards later fall below designated standards, Deer Solution will revoke the approval and notify the franchisee in writing. This means that even after initial approval, a franchisee's supply chain can be disrupted if a previously approved supplier fails to maintain the required standards. Deer Solution estimates that purchases from approved suppliers will represent approximately 80% of the franchisee's total purchases and leases in establishing the Franchised Business and approximately 40% of the on-going operating expenses.