Who is responsible for reimbursing Fitstop's actual costs associated with testing or inspecting a proposed supplier's facilities?

According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee proposes an alternative supplier, the franchisee is responsible for reimbursing Fitstop's actual costs associated with testing or inspecting the proposed supplier's facilities. This applies when a franchisee wants to purchase required items from a supplier not already approved by Fitstop.

Specifically, Fitstop reserves the right to inspect a proposed supplier's facilities and test its products to ensure they meet the brand's standards and quality. The franchisee is then required to cover the actual expenses Fitstop incurs during this testing and inspection process. This policy ensures that Fitstop maintains control over its supply chain and that any deviations from approved suppliers are thoroughly vetted at the franchisee's expense.

This requirement could present a significant cost to a prospective Fitstop franchisee. The actual costs of testing and inspection are not capped, meaning expenses could vary widely depending on the complexity and location of the supplier's facilities. Before proposing an alternative supplier, a franchisee should carefully consider these potential costs and weigh them against any potential benefits of using a different supplier. It would be prudent to discuss with Fitstop what typical costs have been in the past for similar inspections to better estimate potential expenses.