Can Endless Summer Sweets grant approvals of new suppliers?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
r by updating our Manual.
- D. Approved Suppliers of Certain Items. You must purchase your food and drink products including prepared foods with our proprietary recipes from our Approved Vendors. We will publish a list of approved vendors and order procedures in the Manual or otherwise provide that to you in writing. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you or by updating our Manual.
E. Alternative Suppliers
We may approve other or alternate vendors if you request it in writing or if a vendor requests it and if the vendor demonstrates to our satisfaction that it is financially stable and can provide products or services that meet our specifications and that are consistent with our image. We will grant or revoke approvals of suppliers based on criteria appropriate to the situation, which may include evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Our criteria for approving suppliers are not available to you.
There is no fee for us to review or approve an alternate supplier, but we may charge our reasonable costs incurred in evaluating a proposed vendor. We will give you a good faith estimate of our cost of evaluating a proposed vendor within a reasonable time after you make the request, but before we begin the evaluation process. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request.
Issuing Specifications and Standards
We issue specifications and standards to you for applicable aspects of the franchise in our Manual and/or in written directives. We may issue new specifications and standards for any aspect of our brand system, or modify existing specifications and standards, at any time by revising our Manual and/or issuing new written directives (which may be communicated to you by any method we choose).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–16)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, Endless Summer Sweets has the authority to grant approvals of new suppliers. Specifically, Endless Summer Sweets may approve new suppliers or revoke past approvals by providing written notice or updating their manual. This gives Endless Summer Sweets significant control over the supply chain and the products used in the franchise.
If a franchisee wants to use an alternative vendor, they must request approval in writing, or the vendor can request it directly. The vendor must demonstrate financial stability and the ability to provide products or services that meet Endless Summer Sweets's specifications and align with their image. Endless Summer Sweets will evaluate the supplier based on criteria such as capacity, quality, financial stability, reputation, reliability, inspections, product testing, and performance reviews. However, the specific criteria used for approving suppliers are not disclosed to franchisees.
While there is no fee for Endless Summer Sweets to review an alternate supplier, they may charge reasonable costs incurred during the evaluation process. Endless Summer Sweets will provide a good faith estimate of these costs before starting the evaluation. The franchisee will receive written notification of the approval or disapproval of the proposed supplier within 30 days of the request. This process ensures that Endless Summer Sweets maintains control over the quality and consistency of its brand while allowing franchisees some flexibility in sourcing suppliers, subject to franchisor approval.
Endless Summer Sweets estimates that 65% to 75% of the initial purchases to begin operations and 60% to 70% of ongoing operational costs will be for items purchased from Endless Summer Sweets, their affiliates, or their designated/approved suppliers. This highlights the importance of understanding the approved supplier network and the potential costs associated with these suppliers.