Does Dog Haus have the right to inspect a potential supplier's facilities as a condition of approval?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
We also have the right to require, as a condition of approval, that our representatives are permitted to inspect the supplier's facilities and that you deliver to us and/or to an independent, certified laboratory designated by us, all information, specifications and samples that we reasonably designate for testing. Additionally, our representatives must be permitted to meet with the supplier routinely to ensure that the supplier's items and services meet our specifications and standards. You must pay us a fee not to exceed the reasonable cost of the inspection and the actual cost of the test. In addition to product testing, a facility audit may be required. You will be responsible for any additional costs and expenses associated with the inspection of the facility. We will use our good faith efforts to notify you of our decision within 60 days after we receive your request for approval and all requested back-up information. You may not use a supplier unless we notify you of our approval in writing. We may revoke a supplier's approval for failure to comply with our requirements and specifications. We will disapprove or withdraw our approval of any supplier by written notice to you.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–36)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus does have the right to inspect a potential supplier's facilities as a condition of approval. Specifically, Dog Haus may require that its representatives are permitted to inspect the supplier's facilities. This inspection helps Dog Haus ensure that the supplier's items and services meet their specifications and standards.
In addition to facility inspections, Dog Haus can also require franchisees to deliver information, specifications, and samples to them or an independent, certified laboratory for testing. Franchisees are responsible for covering the costs associated with these inspections and tests. These costs include fees not exceeding the reasonable cost of the inspection and the actual cost of the test. A facility audit may also be required, with the franchisee bearing any additional expenses.
Dog Haus commits to using good faith efforts to notify franchisees of their decision regarding supplier approval within 60 days after receiving the request and all necessary information. Franchisees cannot use a supplier unless they receive written approval from Dog Haus. Dog Haus also retains the right to revoke a supplier's approval if they fail to comply with the company's requirements and specifications. This ensures that all suppliers meet Dog Haus's standards consistently.
This requirement is fairly standard in franchising, as franchisors need to maintain quality control and consistency across all locations. By maintaining strict control over the supply chain, Dog Haus aims to protect its brand reputation and ensure that all franchisees offer products and services that meet the company's standards.