What factors may Fitstop consider when evaluating a proposed supplier?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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, if a franchisee proposes an alternative supplier, Fitstop may evaluate several factors. These include the quality of the product at issue, the supplier's production and delivery capabilities, the supplier's overall business reputation, and the supplier’s financial condition. Fitstop may also inspect the proposed supplier's facilities and test its products.
Fitstop may provide the proposed supplier with a copy of their current specifications for the products, provided the supplier agrees to a confidentiality and non-disclosure agreement. The franchisee may be required to reimburse Fitstop for the actual costs associated with testing and inspection of the supplier.
Fitstop will notify the franchisee in writing within 90 days after receiving all necessary information and completing the inspection or testing, whether the proposed supplier is approved or disapproved. If the franchisee does not receive notification within this 90-day period, the supplier is deemed disapproved. Fitstop's criteria for approving or rejecting new suppliers is proprietary, but may be made available to the franchisee upon request. Approved suppliers must comply with Fitstop's requirements regarding insurance, indemnification, and non-disclosure. Fitstop does not guarantee the performance of any supply contract with an approved supplier and may re-inspect or revoke approval at any time.