factual

What are some of the criteria Flowerama uses to determine whether to designate a supplier as an approved supplier?

Flowerama Franchise · 2024 FDD

Answer from 2024 FDD Document

If you wish to purchase an item from a supplier that has not yet been approved by us, you must make a written request to us for approval of the proposed item or supplier. Our criteria for approval, as may be needed, may be requested from us directly in writing on a case-by-case basis. Generally, we apply the following criteria, among others, in considering whether the supplier will be designated as an approved supplier: (1) ability to produce the products, services, supplies, or equipment to meet both our standards and specifications for quality and uniformity and our franchisees' and customers' expectations; (2) production and delivery capabilities and ability to meet supply commitments; (3) integrity of ownership (to ensure that its association with us will not be inconsistent with our image or damage our goodwill); (4) financial stability; and (5) the negotiation of a mutually satisfactory license to protect our intellectual property. Our intention in approving any item or supplier is to ensure brand consistency.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 29–32)

What This Means (2024 FDD)

According to Flowerama's 2024 Franchise Disclosure Document, if a franchisee wishes to purchase items from a supplier not already approved, they must submit a written request for approval. Flowerama states that the specific criteria for approval can be requested in writing on a case-by-case basis. However, the FDD outlines general criteria Flowerama considers when deciding whether to designate a supplier as approved.

These criteria include the supplier's ability to consistently produce products, services, supplies, or equipment that meet Flowerama's standards for quality and uniformity, as well as meeting the expectations of both franchisees and customers. Flowerama also assesses the supplier's production and delivery capabilities, focusing on their ability to fulfill supply commitments reliably.

Furthermore, Flowerama evaluates the integrity of the supplier's ownership to ensure their association with Flowerama will not harm the brand's image or goodwill. The financial stability of the supplier is also a key consideration. Finally, Flowerama considers whether a mutually satisfactory license agreement can be negotiated to protect Flowerama's intellectual property. Flowerama states that the overall goal in approving any item or supplier is to maintain brand consistency across all franchise locations.

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.