Does Fitstop guarantee the performance of supply contracts with approved suppliers?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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, Fitstop does not guarantee the performance of any supply contract with its approved suppliers. Even though Fitstop approves suppliers, franchisees bear the risk of supplier performance. This means that if an approved supplier fails to meet its contractual obligations, Fitstop franchisees cannot hold Fitstop responsible for the supplier's failure.
Fitstop retains the right to re-inspect or revoke approval of a supplier at any time, for any reason, to protect the brand's interests. If Fitstop revokes approval of a supplier, franchisees will receive written notice and must immediately cease placing new orders with that supplier. This clause protects Fitstop's brand and reputation but places the onus on the franchisee to find alternative suppliers quickly.
Prospective Fitstop franchisees should carefully consider the implications of this policy. While Fitstop may assist in identifying and approving suppliers, the ultimate responsibility for ensuring a reliable supply chain rests with the franchisee. It would be prudent to conduct thorough due diligence on all approved suppliers and potentially explore options for diversifying supply sources to mitigate the risk of supplier failure.