Are the criteria Fitstop uses to approve or reject new suppliers proprietary?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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.
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, the criteria Fitstop uses to approve or reject new suppliers are considered proprietary. While the specific criteria are not disclosed, Fitstop may choose to make them available to franchisees upon request, though they are not obligated to do so.
If a franchisee wishes to use a non-approved product or purchase from a non-approved supplier, they must seek written approval from Fitstop. Fitstop reserves the right to charge an evaluation fee for assessing the proposed product or supplier. This fee will be the greater of Fitstop's incurred costs or $1,000 per proposal. Fitstop may request samples or information to evaluate whether the proposed goods, equipment, supplies, services, or supplier meet their standards.
In evaluating a proposed supplier, Fitstop may consider the quality of the product, the supplier's production and delivery capabilities, their business reputation, and financial condition. Fitstop may also provide the proposed supplier with their specifications, provided the supplier signs a confidentiality and non-disclosure agreement. Additionally, Fitstop may inspect the supplier's facilities and test their products, with the franchisee responsible for reimbursing the associated costs. This process ensures that all suppliers meet Fitstop's standards, protecting the brand's reputation and the quality of services provided at each franchise location.