Must all suppliers meet the standards and specifications established by Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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Approval of a product or supplier may be conditioned on requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations, customer relations, frequency and speed of delivery, past experience with our affiliates, concentration of purchases, standards of service (including prompt attention to complaints), or other criteria, and may be temporary pending our continued evaluation of the supplier from time to time. All suppliers must meet the standards and specifications established by us. We will not issue to you or any of our approved suppliers our standards and specifications, except as we deem necessary for purposes of production.
If you would like to purchase or use any products, services, operating assets, or materials that we have not approved or from any unapproved supplier, you must submit to us a written request for approval of the proposed product and/or supplier prior to purchasing any such item. We reserve the right to charge you our then-current new product/supplier application fee and require you to reimburse us for our expenses (which will not exceed the reasonable cost of the research and inspection, and the actual cost of the test) to make the evaluation. 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 withhold approval of the supplier. We are likely to reject your request for a new supplier without conducting any investigation if the proposed supplier is for items bearing our 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.
You must purchase certain products and supplies that contain our Marks. You must purchase the implementation services from us.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, all suppliers must meet the standards and specifications established by them. Extreme Art Studio franchisees are required to operate their business according to the Extreme Art Studio system and its specifications. This includes purchasing or leasing all products, services, supplies, fixtures, equipment, inventory, computer hardware and software, and real estate. These items must adhere to Extreme Art Studio's specifications, potentially requiring purchases from their designees, approved suppliers, or directly from Extreme Art Studio or its affiliates. Deviating from these standards without prior written consent is prohibited.
The Franchise Operations Manual contains the standards, specifications, and guidelines for all products and services necessary for establishing and operating an Extreme Art Studio Business, including a list of approved vendors. Franchisees will be notified of any new or modified standards through amendments or supplements to the manual or via written communication. Franchisees must purchase or lease approved brands, types, or models of products, services, supplies, operating assets, or other items only from suppliers designated or approved by Extreme Art Studio.
Approval of a product or supplier may be based on product quality, prices, consistency, reliability, financial capability, labor and customer relations, delivery speed, past experience with affiliates, purchase concentration, and service standards. Extreme Art Studio may periodically re-inspect the facilities and products of any approved supplier and revoke approval if the supplier fails to meet their criteria. If a franchisee wishes to use a product or supplier not already approved, they must submit a written request for approval, potentially incurring application fees and covering evaluation expenses. Extreme Art Studio estimates that approximately 75% of purchases required to open an Extreme Art Studio Business and 50% of purchases required to operate the business will be from them or from other approved suppliers and under their specifications.