What is the deadline for Extreme Art Studio to respond to a franchisee's request to approve a new supplier?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to inspect the proposed supplier's facilities, and to require
product samples from the proposed supplier to be delivered at our option either directly to us or to a third party we designate for testing. We shall notify you in writing of the approval or rejection of the proposed supplier within a reasonable time after completion of the investigation of the proposed supplier. If we fail to respond within 60 days, your request will be deemed denied. We may, in our sole discretion, elect to withhold approval of the supplier. You acknowledge that we are likely to reject your request for a new supplier without conducting any investigation if the proposed new supplier is for items bearing our proprietary Marks or if we already have designated an exclusive supplier for the item proposed to be offered by the new supplier. We reserve the right to periodically re-inspect the facilities and products of any approved supplier and to revoke our approval if the supplier does not continue to meet any of our criteria. We also reserve the right to charge suppliers a royalty for the right to manufacture products for use in Extreme Art Studio Businesses.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Extreme Art Studio has a specific timeframe to respond to a franchisee's request for approval of a new supplier. After the investigation of the proposed supplier is complete, Extreme Art Studio must notify the franchisee in writing of the approval or rejection within a reasonable time. If Extreme Art Studio fails to respond within 60 days, the franchisee's request will be considered denied.
This means that if a franchisee wants to use a supplier not already approved by Extreme Art Studio, they must submit a request for approval. Extreme Art Studio can inspect the supplier's facilities and request product samples for testing. The franchisee needs to factor in this 60-day potential waiting period when sourcing new suppliers to ensure they do not face supply disruptions.
However, Extreme Art Studio may choose to reject a new supplier without any investigation if the supplier is for items bearing Extreme Art Studio's proprietary marks or if Extreme Art Studio already has an exclusive supplier for the item. Extreme Art Studio also retains the right to re-inspect and revoke approval of any approved supplier if they no longer meet Extreme Art Studio's criteria. This protects Extreme Art Studio by ensuring consistent quality and branding across all franchise locations.