What right does Devon Creek Franchisor have regarding unapproved items or suppliers?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
mit to Franchisor a written request for such approval prior to using such product, service or supplier. Franchisee shall not purchase or lease any item or use any supplier until and unless such item or supplier has been approved in writing by Franchisor. Franchisor shall have the right to require that its representatives be permitted to inspect the supplier's facilities and to test or otherwise evaluate samples from the supplier. Franchisor reserves the right to charge Franchisee an evaluation fee of equal to the greater of Five Hundred Dollars ($500) or Franchisor's actual cost of evaluation, inspection and testing. Franchisor shall notify Franchisee whether Franchisor approves or disapproves of the proposed item or supplier within sixty (60) days after Franchisor receives all required information to evaluate the product, service or supplier. If Franchisor approves of the item or service for use by the entire system, the evaluation fee may be refunded. Franchisor reserves the right, at its option, to re-inspect from time to time the facilities and products of any such approved supplier and to revoke its approval upon the supplier's failure to continue to meet any of Franchisor's then-current criteria. Nothi
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, franchisees must obtain written approval from Devon Creek before purchasing, leasing, or using any equipment, product, or service from a supplier that hasn't already been approved. Devon Creek has the right to inspect a potential supplier's facilities and test samples.
Devon Creek reserves the right to charge an evaluation fee for assessing a new item or supplier. This fee will be the greater of $500 or Devon Creek's actual cost for the evaluation, inspection, and testing. Devon Creek will then notify the franchisee of its decision within 60 days of receiving all the necessary information. If Devon Creek approves the item or service for the entire Devon Creek system, the evaluation fee may be refunded to the franchisee.
Even after initial approval, Devon Creek retains the right to re-inspect approved suppliers periodically and can revoke approval if a supplier fails to meet the current standards. However, Devon Creek is not obligated to approve any specific item or supplier. This ensures Devon Creek maintains control over the quality and consistency of products and services used within its franchise system.