Can Endless Summer Sweets revoke past approvals of suppliers?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
ppliers 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.
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 revoke previously approved suppliers. Specifically, franchisees are required to purchase food and drink products, including prepared foods with proprietary recipes, from Endless Summer Sweets's approved vendors. The list of these approved vendors and the associated ordering procedures are detailed in the manual or provided in writing to the franchisee.
Endless Summer Sweets retains the right to both grant approvals to new suppliers and revoke approvals from existing suppliers. They will notify franchisees of these changes either through written notice or by updating the franchise manual. This means that a supplier a franchisee relies on could be removed from the approved list, potentially disrupting their supply chain and requiring them to find a new vendor that meets Endless Summer Sweets's standards.
Endless Summer Sweets may approve alternative vendors if a franchisee requests it in writing, or if a vendor demonstrates that they are financially stable and can provide products or services that meet Endless Summer Sweets's specifications and align with their brand image. Endless Summer Sweets will evaluate suppliers based on criteria such as capacity, quality, financial stability, reputation, and reliability, and may also conduct 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 franchisees for reasonable costs incurred during the evaluation process. Endless Summer Sweets will provide a good faith estimate of these costs before starting the evaluation and will notify the franchisee in writing of the approval or disapproval of the proposed supplier within 30 days of receiving the request. This process ensures that Endless Summer Sweets maintains control over its supply chain and product quality, while also providing franchisees with a mechanism to propose alternative suppliers.