Can Fitstop inspect a proposed supplier's facilities?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
tting 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, if a franchisee proposes an alternative supplier, Fitstop reserves the right to inspect the supplier's facilities. The franchisee may be required to reimburse Fitstop for the actual costs associated with such testing or inspection.
Fitstop will notify the franchisee in writing within 90 days after receiving all necessary information or completing the inspection and testing, advising whether the proposed supplier is approved or disapproved. If the franchisee does not receive notification within this 90-day period, the proposed supplier is considered disapproved.
Fitstop may re-inspect and/or revoke approval of a supplier at any time and for any reason to protect the best interests and goodwill of the Fitstop system and its proprietary marks. If approval is revoked, the franchisee will receive written notice and must immediately cease placing new orders with the revoked supplier.