factual

How will Desi District notify a franchisee of the approval or disapproval of a proposed supplier?

Desi_District Franchise · 2024 FDD

Answer 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 already on Desi District's approved list, the franchisee must request approval in writing. Desi District will then evaluate the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability, potentially including inspections, product testing, and performance reviews. It is important to note that Desi District's specific criteria for approving suppliers are not disclosed to franchisees.

Desi District will provide the franchisee with written notification of the approval or disapproval of the proposed supplier within 30 days after receiving the franchisee's request. This written notification is the formal method by which Desi District communicates its decision regarding the alternative supplier.

Desi District also retains the right to grant new approvals or revoke existing approvals of suppliers. This can be done either through direct written notice to the franchisee or by updating the Brand Standards/Operations Manual. This means franchisees need to stay informed of any changes to the approved supplier list, as these changes could impact their sourcing options and compliance with Desi District's standards.

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.