Must approved Fitstop suppliers comply with requirements regarding insurance?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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 the revoked service.
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, each supplier that Fitstop approves must comply with Fitstop's usual and customary requirements regarding insurance, indemnification, and non-disclosure. However, Fitstop does not guarantee the performance of any supply contract with that supplier under any circumstances.
Fitstop retains the right to re-inspect and/or revoke its approval of a supplier, service, or item at any time and for any reason to protect the best interests and goodwill of its System and Proprietary Marks. The revocation of a previously approved product, service, or alternative supplier is effective immediately when the franchisee receives written notice from Fitstop. Following receipt of the notice, the franchisee may not place any new orders for the revoked product or with the revoked supplier or offer the revoked service.
This requirement ensures that approved suppliers meet Fitstop's standards for risk management and legal compliance, protecting both the franchisor and franchisees from potential liabilities. However, franchisees should be aware that Fitstop's approval of a supplier does not guarantee the supplier's performance, and Fitstop can revoke approval at any time, which could disrupt the franchisee's supply chain.