If a Fitstop franchisee wishes to purchase from a non-approved supplier, what must they obtain before doing so?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
ternative supplier.
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.
We will notify you in writing within 90 days after we receive all necessary information and/or complete our inspection or testing to advise you if we approve or disapprove the proposed service, item and/or supplier. If you do not receive a notification from us within that 90-day period, the proposed service, item and/or supplier is deemed disapproved. 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. 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
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, a franchisee must request and obtain written approval from Fitstop before purchasing from a non-approved supplier. The franchisee must also pay Fitstop's then-current evaluation fee when submitting the request. Fitstop may charge the greater of the costs incurred in evaluating the proposal or $1,000 per proposal.
Fitstop may ask the franchisee to submit samples or information to help them decide whether the potential supplier meets their standards. Fitstop will evaluate the supplier's production and delivery capability, overall business reputation, and financial condition. If Fitstop provides the alternate supplier with their specifications, the supplier must enter into a confidentiality and non-disclosure agreement. Fitstop may also inspect the supplier's facilities and test its products, with the franchisee required to reimburse Fitstop for the actual costs of testing and inspection.
Fitstop will notify the franchisee in writing within 90 days after receiving all necessary information or completing their inspection or testing, indicating whether the proposed supplier is approved or disapproved. If the franchisee does not receive notification within this 90-day period, the supplier is considered disapproved. 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 revoke approval at any time to protect the brand's interests.