Who pays the evaluation fee for a proposed supplier evaluation by Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you would like to purchase or lease any items from any unapproved supplier, then you must submit to us a written request for approval of the proposed supplier or the proposed supplier may submit its own request. We may inspect the proposed supplier's facilities, and require that product samples from the proposed supplier be delivered for testing either directly to us or any independent certified laboratory that we designate. We also may require you (or the proposed supplier requesting the evaluation) to pay us an evaluation fee (not to exceed the actual cost of the inspection and the actual cost of the test (see Item 6) to make the evaluation. We will approve or disapprove your proposed supplier within 60 days of receiving all of the information that we require for the evaluation. We reserve the right to periodically re-inspect the facilities and products or services of any approved supplier, and revoke our approval if the supplier does not continue to meet any of our criteria. Our criteria for approving suppliers are not currently available to franchisees for review.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 26–29)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if a franchisee wants to purchase or lease items from an unapproved supplier, they must request approval from Degree Wellness. Alternatively, the unapproved supplier can submit their own request for approval.
Degree Wellness may then inspect the supplier's facilities and require product samples for testing at their own facilities or an independent certified laboratory. The FDD states that Degree Wellness may require the franchisee or the proposed supplier to pay an evaluation fee.
The evaluation fee will not exceed the actual cost of the inspection and the actual cost of the test. Degree Wellness will then approve or disapprove the proposed supplier within 60 days of receiving all required information for the evaluation. This process ensures that all suppliers meet Degree Wellness's standards, but it also means that the franchisee may incur additional costs if they wish to use a supplier not already approved by the franchisor.