Must approved Fitstop suppliers comply with requirements regarding non-disclosure?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
o 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 the revoked service.
Right to Derive Revenue
We and our affiliates may derive revenue from the sale of products, supplies, services and equipment to you by us, our affiliates and our other Approved Suppliers.
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 approved by Fitstop must adhere to Fitstop's standard requirements for insurance, indemnification, and non-disclosure. This means that any supplier that Fitstop approves for franchisees to use must agree to keep certain information confidential.
If a Fitstop franchisee proposes an alternative supplier, Fitstop may provide that supplier with Fitstop's specifications for the products the franchisee wants the supplier to provide. However, before Fitstop shares its specifications, the potential supplier must sign a confidentiality and non-disclosure agreement in a form specified by Fitstop. Fitstop may also inspect the potential supplier's facilities and test its products, with the franchisee responsible for reimbursing Fitstop's costs for the inspection and testing.
Fitstop retains the right to re-inspect or revoke approval of a supplier at any time, for any reason, to protect the interests and goodwill of the Fitstop system and its trademarks. If Fitstop revokes approval of a supplier, franchisees will receive written notice and must immediately stop placing new orders with that supplier. This ensures that Fitstop maintains control over its supply chain and can enforce its standards for confidentiality and quality.