From whom must a Dryer Vent Squad franchisee purchase System Supplies?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
Squad Business; (f) Operations Manual; (g) Business Management System Data; (h) Know-How; (i) Confidential Information; and (j) Digital Media. All determinations as to the system including components to the system and modifications and replacements thereto shall be determined by Franchisor in Franchisor's Reasonable Business Judgment.
"System Supplies" refers to and means the equipment and supplies designated by Franchisor as required for use in connection with Franchisee's Dryer Vent Squad Business and the Approved Services and Products. Without limitation to the foregoing, the System Supplies shall include System branded, nonbranded and third-party branded equipment and supplies designated by Franchisor for use in the day-to-day operations of Franchisee's Dryer Vent Squad Business including, among other things: commercial vacuums, vent cleaning tools, appliance moving tools, testing equipment, drills, miscellaneous hand tools, Customer Vouchers, installation kits, uniforms, and other products
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad FDD, "System Supplies" are defined as the equipment and supplies that Dryer Vent Squad designates as required for the operation of the Dryer Vent Squad Business. These supplies include both branded and unbranded items, as well as third-party branded equipment and supplies. Examples of System Supplies include commercial vacuums, vent cleaning tools, appliance moving tools, testing equipment, drills, hand tools, customer vouchers, installation kits, and uniforms. The franchisor can modify the list of designated System Supplies over time.
The FDD states that upon termination or expiration of the franchise agreement, the franchisee must pay all sums and fees due to Dryer Vent Squad, including payments for System Supplies. Additionally, the franchisee must cease communicating with or ordering products from Dryer Vent Squad's designated suppliers and vendors of System Supplies.
While the FDD defines System Supplies, it does not explicitly state from whom a franchisee is required to purchase these supplies. It indicates that Dryer Vent Squad designates the required equipment and supplies and that franchisees must cease ordering from the franchisor's designated suppliers upon termination of the agreement. A prospective franchisee should seek clarification from Dryer Vent Squad regarding the approved or required suppliers for System Supplies during the due diligence process.