If a Face Foundrie franchisee wants to use a supplier that Face Foundrie hasn't previously approved, what must they do?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
s attached as Exhibit G to the Franchise Agreement.
Approval of Alternative Suppliers
Except for products and services that are available from a single source, if you wish to purchase any item from a supplier we have not previously approved or an item that does not comply with our standards and specifications, you must first submit to us a written request for approval. We will require the proposed supplier to provide us with certain financial and operational information and other information regarding the supplier and the items to be approved. In addition, the proposed supplier must permit our representatives to inspect its facilities (e.g. business offices and/or manufacturing facilities, as applicable). We reserve the right, at our option, and at the proposed supplier's expense, to inspect or re-inspect the facilities, equipment, and raw materials of any supplier, at any time. Before we approve a supplier, we will evaluate the economic terms of a possible relationship and ensure that the proposed supplier meets our requirements. When approving suppliers, we consider whether they demonstrate the ability to meet our standards and specifications, and whether they possess adequate quality controls and capacity to supply your needs promptly and reliably. We will make our criteria available to you upon your request.
The proposed supplier or you must pay, in advance, a fee equal to the greater of $2,500 or the actual reasonable cost of any evaluation, testing, and inspections we undertake, the actual amount of which will depend on the evaluation, testing and inspections necessary to test such supplier's products. Within a reasonable time frame after we receive the completed request and after we complete any evaluation and inspection or testing (approximately 45 days), we will notify you in writing of our approval or disapproval of the proposed supplier or item. Generally, we will respond to your requests for supplier approval within a reasonable time period not
to exceed 90 days. We are not required to approve any supplier or item not meeting our standards and specifications. We may deny approval for any reason, including our determination to limit the number of approved suppliers. You must not use, offer for sale or sell any of the proposed supplier's products or any other product that does not meet our standards or specifications until you receive our written approval of the proposed supplier or item.
We may revoke our approval of particular goods or services, or of the supplier that supplies them, if we determine, in our sole discretion, that they no longer meet our standards or specifications. If you receive a written notice of revocation from us, you mu
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–31)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, if a franchisee wishes to purchase any item from a supplier Face Foundrie has not previously approved, or an item that does not comply with their standards, the franchisee must first submit a written request for approval. Face Foundrie will then require the proposed supplier to provide financial and operational information, along with other relevant details about the supplier and the items in question. The supplier must also allow Face Foundrie representatives to inspect their facilities, such as business offices or manufacturing plants. Face Foundrie reserves the right to inspect or re-inspect the supplier's facilities, equipment, and raw materials at any time, at the supplier's expense. Before approving a supplier, Face Foundrie will evaluate the economic terms of the potential relationship and ensure the supplier meets their requirements, considering their ability to meet standards and specifications, quality controls, and capacity to supply needs promptly and reliably.
The proposed supplier or the franchisee must pay a fee in advance, equal to the greater of $2,500 or the actual reasonable cost of any evaluation, testing, and inspections Face Foundrie undertakes. The actual amount will depend on the necessary evaluations, testing, and inspections to assess the supplier's products. Face Foundrie aims to notify the franchisee in writing of their approval or disapproval within a reasonable timeframe after receiving the completed request and completing any evaluations, inspections, or testing, typically around 45 days. Generally, Face Foundrie will respond to requests for supplier approval within a reasonable period, not exceeding 90 days.
Face Foundrie is not obligated to approve any supplier or item that does not meet their standards and specifications and may deny approval for any reason, including limiting the number of approved suppliers. Franchisees are prohibited from using, offering for sale, or selling any products from the proposed supplier or any other product that does not meet Face Foundrie's standards until they receive written approval. Face Foundrie retains the right to revoke approval of particular goods, services, or suppliers if they determine that they no longer meet their standards or specifications. If a franchisee receives a written notice of revocation, they must immediately stop selling disapproved products and/or stop purchasing from the disapproved supplier.
It's important to note that Face Foundrie has the discretion to modify their standards and specifications at any time, communicating these changes through the Operations Manual or in writing. These modifications, which will be uniform for all franchisees, may require additional expenditures. Additionally, Face Foundrie may receive payments or benefits, such as rebates, discounts, and allowances, from authorized suppliers based on their dealings with franchisees, and they may use these funds without restriction for any purpose they deem appropriate.