What is the dependency for Fitstop to provide product specifications to a proposed supplier?

According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee proposes an alternate supplier, Fitstop may provide the proposed supplier with their current product specifications, but only if the supplier enters into a confidentiality and non-disclosure agreement in the form that Fitstop specifies.

This requirement ensures that Fitstop's proprietary information and standards are protected, even when a franchisee seeks to use a different supplier. The confidentiality agreement is a standard legal tool used to prevent unauthorized disclosure of sensitive business information. This process allows Fitstop to maintain control over its brand standards and operational procedures, regardless of the source of the products.

For a prospective Fitstop franchisee, this means that suggesting a new supplier involves more than just finding a cheaper or more convenient option. The proposed supplier must be willing to sign Fitstop's confidentiality agreement, which could involve legal review and negotiation. Additionally, Fitstop retains the right to inspect the supplier's facilities and test its products, with the franchisee potentially bearing the costs of such inspections and tests. This process ensures that any alternative supplier meets Fitstop's quality and operational standards before being approved.

It is important for franchisees to understand that even if a supplier is approved, Fitstop does not guarantee the performance of any supply contract with that supplier. Fitstop can also revoke approval of a supplier at any time, requiring the franchisee to cease placing new orders with the revoked supplier immediately upon receiving written notice. This highlights the importance of carefully considering the stability and reliability of any proposed alternative supplier.