Does Extreme Art Studio have the right to inspect a proposed supplier's facilities for Extreme Art Studio franchisees?
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 retains the right to inspect a proposed supplier's facilities. They can also request product samples, which can be sent either directly to them or to a third party they designate for testing.
Extreme Art Studio is obligated to notify the franchisee in writing whether the proposed supplier is approved or rejected. This notification will occur within a reasonable time after the investigation is complete. However, if Extreme Art Studio fails to respond within 60 days, the request is considered denied. Extreme Art Studio has the discretion to withhold approval of a supplier.
Extreme Art Studio is likely to reject a request for a new supplier without any investigation if the proposed supplier is for items bearing their proprietary marks or if they already have an exclusive supplier for the item. Extreme Art Studio also reserves the right to periodically re-inspect the facilities and products of any approved supplier and to revoke their approval if the supplier does not continue to meet their criteria. Additionally, Extreme Art Studio reserves the right to charge suppliers a royalty for the right to manufacture products for use in Extreme Art Studio Businesses.