Who pays for the inspection of a proposed alternative supplier's facilities for a Face Foundrie franchise?
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
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 wants to use a supplier not already approved by Face Foundrie, the proposed supplier may need to allow Face Foundrie's representatives to inspect their facilities. Face Foundrie reserves the right to inspect or re-inspect the facilities, equipment, and raw materials of any supplier at any time.
The cost of these inspections falls on the proposed supplier. However, the proposed supplier or the franchisee must pay Face Foundrie in advance a fee 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 evaluation, testing, and inspections necessary to test the supplier's products.
Face Foundrie will then notify the franchisee in writing of the approval or disapproval of the proposed supplier or item within approximately 45 days after receiving the completed request and completing any evaluation and inspection or testing. Generally, Face Foundrie will respond to requests for supplier approval within a reasonable time period not to exceed 90 days. Face Foundrie is not required to approve any supplier or item not meeting its standards and specifications and may deny approval for any reason, including its determination to limit the number of approved suppliers.
This policy ensures Face Foundrie maintains quality control over its products and services, but it also means a franchisee may incur costs when seeking alternative suppliers. Franchisees must not use, offer for sale, or sell any of the proposed supplier's products or any other product that does not meet Face Foundrie's standards or specifications until they receive written approval of the proposed supplier or item.