What criteria must a supplier meet to become an 'Approved Supplier' for an Exit franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
or that is under common control with the referenced party. The term "control" means the possession, directly or indirectly, of the power to direct or cause the direction, of the management and policies of an entity, whether through ownership of voting securities, by contract or otherwise.
- (B) Agreement: "Agreement" or "this Agreement" means this Franchise Agreement executed between Subfranchisor and Franchisee.
- (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 and/or services that Exit requires or permits franchisees to use in their operations, provided that the supplier has been approved by the subfranchisor and has signed Exit's Approved Supplier Agreement or a Limited Supplier Agreement.
The Training Manual outlines the specific standards that Exit or its affiliates use to determine which suppliers become Approved Suppliers. It also details the types of products and services that must be sourced from these approved suppliers. Furthermore, the manual describes the process by which new suppliers can be added to the approved list.
As an Exit franchisee, you are obligated to follow the procedures and requirements related to Approved Suppliers. This means adhering to the standards set in the Training Manual and utilizing Approved Suppliers for the specified products and services. Prospective franchisees should review the Training Manual carefully to understand these requirements and discuss any questions or concerns with Exit's franchise representatives.