Under what condition is a Desi District franchisee permitted to contract with alternative suppliers?
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, a franchisee is permitted to contract with alternative suppliers only if they request approval in writing from Desi District and the franchisor grants that approval. Desi District will assess the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability, potentially including inspections, product testing, and performance reviews.
The FDD specifies that the criteria for approving suppliers are not disclosed to the franchisee. Desi District commits to providing written notification of approval or disapproval within 30 days of receiving the franchisee's request.
Desi District retains the right to grant or revoke supplier approvals by written notice or by updating their operations manual. This means that even if a supplier is initially approved, Desi District can later rescind that approval. There is no fee for Desi District to review or approve an alternate supplier. This process ensures that Desi District maintains control over its brand standards and the quality of products and services associated with its franchise system.