factual

Can Fitstop update or modify the list of Approved Suppliers?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

We have the right to require you to purchase any items or services necessary to operate your Franchised Business from a supplier that we approve or designate – which we refer to as an "Approved Supplier" and may include us or our Affiliate(s). We will provide you with a list of our then-current Approved Suppliers in writing as part of the Manuals or otherwise in writing, and we may update or modify this list as we deem appropriate.

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 retains the right to modify the list of approved suppliers. The FDD states that Fitstop will provide a list of approved suppliers in writing as part of the manuals or otherwise in writing, and "may update or modify this list as we deem appropriate." This gives Fitstop considerable latitude in determining from whom franchisees must source goods and services.

This provision means that a Fitstop franchisee must remain flexible and adaptable to changes in the supply chain. While the initial list of approved suppliers is provided in writing, Fitstop can alter this list at any time. This could impact a franchisee's costs, product quality, or operational efficiency, depending on the new suppliers and their terms. Franchisees need to factor in the potential for these changes when projecting their expenses and managing their business.

Furthermore, the FDD outlines the process for requesting approval of alternative suppliers. Franchisees can propose a non-approved supplier, but they must obtain written approval from Fitstop and may incur an evaluation fee, with Fitstop reserving the right to charge the greater of the evaluation costs or $1,000 per proposal. Fitstop will evaluate the supplier's capabilities, reputation, and financial condition. This process ensures that Fitstop maintains control over its brand standards and supply chain, but it also adds an administrative burden and potential costs for franchisees seeking alternative suppliers.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.