Does an Exit Approved Supplier need to sign an agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
(C) Approved Supplier: "Approved Supplier" means any supplier or vendor of various goods and/or services that are required or permitted to be utilized by Franchisee in the operation of the Franchise, which supplier or vendor has been approved by Subfranchisor and has signed EXIT's Approved Supplier Agreement or a Limited Supplier Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, an Approved Supplier is defined as a supplier or vendor of goods or services that Exit has approved for franchisees to use in their operations. To become an Exit Approved Supplier, the supplier or vendor must sign Exit's Approved Supplier Agreement or a Limited Supplier Agreement.
This requirement ensures that Exit maintains a level of quality control over the goods and services used by its franchisees. By mandating that Approved Suppliers sign an agreement, Exit can set standards and expectations for those suppliers, ensuring they meet the brand's requirements.
For a prospective Exit franchisee, this means they will be required to use suppliers from the Approved Supplier list for certain products and services. They should familiarize themselves with the list and understand the implications of being required to use these specific suppliers. It also means understanding the process by which new suppliers can be added to the approved list, as outlined in the Training Manual.