If Dryject requires a franchisee or supplier to pay for inspection and testing, are these actual costs?

If you desire to purchase any items from an unapproved supplier, you or the supplier must submit to us a written request for approval. We will then examine the vendor or supplier, which examination may include a review of product specifications, inspection of the vendor/supplier's facilities, actual testing (or demo) of their product, inquiries as to general reputation and reliability, and all other factors as we deem important. We must respond to your request in writing within 30 days. Our approval will not be unreasonably withheld, but must be obtained in writing. In the event we do not provide you with a written decision, the request will be deemed denied. We reserve the right to require that a representative be permitted to inspect the supplier's facilities and samples from the supplier be delivered to us or our designee for testing. We reserve the right to charge you a fee for reviewing a proposed supplier of any goods to be used in connection with the Franchise. If we determine that it is necessary to inspect the supplier's facilities or conduct tests, we will require you or the supplier to pay our actual costs incurred for this inspection and testing. We may, periodically, re-inspect the facilities and products of any previously approved supplier and may revoke our approval if the supplier fails to meet any of our standards and specifications at any time. We update our lists of approved suppliers periodically and issue the updated lists to all franchise owners.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–24)