Does Fitstop allow franchisees to purchase required items from alternative suppliers?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
n-Approved Products
We may, but are not obligated to, grant your request to: (i) offer any products or services in connection with your Franchised Business that are not Approved Products and Services; or (ii) purchase any item or service we require you to purchase from an Approved Supplier from an alternative supplier.
If you wish to undertake either of these actions, you must request and obtain our approval in writing before: (i) using or offering the non-approved product or service in connection with your Franchised Business; or (ii) purchasing from a non-approved supplier. You must pay our then-current supplier or non-approved product or service evaluation fee when submitting your request. If you make such a proposal, we reserve the right to charge you the greater of (a) the costs/expenses we incur in evaluating/testing your proposal, and (b) $1,000 per proposal. We may ask you to submit samples or information so that we can make an informed decision whether the goods, equipment, supplies, services or supplier meet our specifications and quality standards. In evaluating a supplier that you propose to us, we may consider not only the quality of the product at issue, but also the supplier's production and delivery capability, overall business reputation and financial condition. We may provide any alternate supplier you propose with a copy of our then-current specifications for any product(s) you wish the supplier to supply, provided the supplier enters into a confidentiality and non-disclosure agreement in the form we specify. We may also inspect a proposed supplier's facilities and test its products, and request that you reimburse our actual costs associated with the testing/inspection.
We will notify you in writing within 90 days after we receive all necessary information and/or complete our inspection or testing to advise you if we approve or disapprove the proposed service, item and/or supplier. If you do not receive a notification from us within that 90-day period, the proposed service, item and/or supplier is deemed disapproved. The criteria we use in approving or rejecting new suppliers is proprietary, but we may (but are not required to) make it available to you upon request. Each supplier that we approve of must comply with our usual and customary requirements regarding insurance, indemnification and non-disclosure. If we approve any supplier, we will not guarantee the performance of any supply contract with that supplier under any circumstances. We may re-inspect and/or revoke our approval of a supplier or service or item at any time and for any reason to protect the best interests and goodwill of our System and Proprietary Marks. The revocation of a previously approved product, service or alternative supplier is effective immediately when you receive written notice from us of revocation and, following receipt of our notice, you may not place any new orders for the revoked product, or with the revoked supplier or offer
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–23)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees may request to purchase required items from alternative suppliers. However, Fitstop is not obligated to grant this request.
To seek approval, a franchisee must submit a written request to Fitstop and pay their then-current evaluation fee. Fitstop reserves the right to charge the greater of their costs/expenses for evaluating the proposal or $1,000 per proposal. As part of the evaluation, Fitstop may ask for samples or information to assess whether the alternative supplier meets their specifications and quality standards. They may also consider the supplier's production and delivery capabilities, business reputation, and financial condition. The proposed supplier may be required to enter into a confidentiality and non-disclosure agreement and allow Fitstop to inspect their facilities and test their products, with the franchisee reimbursing Fitstop for the associated costs.
Fitstop will notify the franchisee in writing of their decision within 90 days of receiving all necessary information or completing their inspection/testing. If no notification is received within this period, the proposed supplier is deemed disapproved. While the criteria for approving or rejecting suppliers are proprietary, Fitstop may make them available upon request. Approved suppliers must comply with Fitstop's requirements regarding insurance, indemnification, and non-disclosure. Fitstop does not guarantee the performance of any supply contract with an approved supplier and may revoke approval at any time if it is in the best interest of the Fitstop system.
If Fitstop revokes a previously approved supplier, the franchisee must immediately cease placing new orders with that supplier upon receiving written notice. This process ensures Fitstop maintains control over its brand standards and supply chain, while allowing franchisees a potential avenue to seek alternative suppliers under specific conditions and with Fitstop's explicit approval.