Are Dryer Vent Squad or its affiliates currently approved suppliers?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
We estimate that your purchase of goods and services from suppliers according to our specifications, including your purchase of goods or services from our designated exclusive suppliers to represent approximately 75% of your total purchases and leases in establishing the Franchised Business and approximately 40% of the on-going operating expenses of the Franchised Business. Currently, neither us nor our affiliates are approved suppliers of the source restricted goods and services identified below. Currently no officer of ours owns an interest in any of our designated suppliers.
We currently require that you purchase or lease the following source restricted goods and services from either us or our designated supplier:
System Supplies You must maintain an initial and ongoing inventory of System Supplies.
You must purchase the System Supplies, as designated by us, from us, our affiliates, and/or our designated suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, neither Dryer Vent Squad nor its affiliates are currently approved suppliers for source-restricted goods and services. However, Dryer Vent Squad does require franchisees to purchase system supplies, branded items, and marketing materials from Dryer Vent Squad, its affiliates, or its designated suppliers.
Dryer Vent Squad reserves the right to designate themselves or their affiliates as exclusive suppliers in the future, regardless of whether competing suppliers exist. If Dryer Vent Squad does not designate a supplier for a particular item in its manuals, franchisees must purchase those products, supplies, and services from suppliers that meet Dryer Vent Squad's specifications and standards.
Dryer Vent Squad estimates that purchases from designated or exclusive suppliers will account for approximately 75% of the franchisee's total initial purchases and leases and about 40% of ongoing operating expenses. While there are currently no purchase or supply agreements in effect, Dryer Vent Squad may negotiate these in the future, potentially limiting the number of approved vendors. Franchisees will not receive any material benefits for using designated or approved suppliers, but Dryer Vent Squad and its affiliates may receive rebates or other benefits from these suppliers based on franchisee purchases.
If a franchisee wishes to use a supplier not already approved, they must submit a written request to Dryer Vent Squad for approval, which may include a supplier review and testing fee, samples, and facility inspections. Dryer Vent Squad will then notify the franchisee of their decision within 60 days, retaining the right to withhold approval based on factors such as the supplier's ability to meet standards, quality control, and the overall interests of the Dryer Vent Squad system.