How might Desi District communicate the approval or revocation of a supplier to Desi District franchisees?
Desi_District 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 26–29)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, if a franchisee wants to use a supplier that is not on Desi District's list of approved suppliers, the franchisee must request approval in writing. Desi District will then grant or revoke approvals based on criteria such as the supplier's capacity, quality, financial stability, reputation, and reliability, including inspections, product testing, and performance reviews.
Desi District states that it will provide written notification of the approval or disapproval of any supplier within 30 days after receiving the franchisee's request. Desi District may also grant approvals of new suppliers or revoke past approvals of suppliers by written notice to the franchisee, or by updating their operations manual. This means that franchisees need to stay updated with any changes to the manual to ensure they are using approved suppliers.
This policy is fairly standard in franchising, as franchisors need to maintain quality control and brand consistency. By controlling the supply chain, Desi District can ensure that all franchisees are using products and services that meet their standards. Franchisees should be aware of these restrictions and factor in the time it takes to get a supplier approved when making purchasing decisions. It is also important to maintain good communication with Desi District to stay informed about any changes in approved suppliers.