Does Fitstop approve or disapprove requests to purchase from suppliers other than the current Approved Suppliers?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We will approve or disapprove of your requests to: (i) purchase and/or offer non-approved products or services in connection with the Franchised Business; and (ii) make Required Purchases from suppliers other than our then-current Approved Suppliers.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has the right to either approve or disapprove a franchisee's requests to make required purchases from suppliers who are not on the list of current Approved Suppliers. This means a franchisee cannot unilaterally decide to switch suppliers for required items without Fitstop's express consent.
This approval process gives Fitstop control over the supply chain and ensures consistency across all franchise locations. Fitstop can maintain quality control and standardization by mandating the use of specific suppliers. This can benefit the brand's reputation and customer experience.
However, this requirement also limits a franchisee's autonomy and ability to negotiate better deals with alternative suppliers. If a franchisee finds a supplier offering lower prices or better terms, they must still obtain Fitstop's approval before switching. This could potentially impact the franchisee's profitability.
Prospective Fitstop franchisees should inquire about the criteria Fitstop uses to evaluate alternative suppliers and the process for requesting approval. Understanding these factors can help franchisees assess the flexibility and potential limitations of the approved supplier system.