Can Floyds 99 franchisees purchase or lease equipment from suppliers that are not designated or approved?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall not purchase or lease any inventory, equipment, supplies, or services we have not approved, or purchase or lease these items from a supplier we have not designated or approved. You must notify us and obtain our written approval in advance if you want to purchase or lease items from a supplier we have not designated or approved. The notification should include sufficient specifications, photographs, drawings and other information and samples to determine whether those items or those suppliers meet our specifications. You must reimburse us for the actual cost of any testing and the reasonable cost of investigation to determine whether those items or those suppliers meet our specifications. Other than suppliers or vendors who are our only approved or designated sources, we will not unreasonably withhold our approval of a supplier of your choosing if the supplier meets our published standards and specifications. We will notify you in writing within 30 days of receiving your request if we reject a proposed supplier. We reserve the right to change the published standards regarding any approved supplier or any inventory, equipment, supplies, or services used, offered for sale or leased by franchisees upon 30 days written notice to all franchisees and all approved suppliers. We may revoke our approval of a supplier on 30 days prior written notice.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–29)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees are generally restricted to purchasing or leasing inventory, equipment, supplies, and services only from suppliers that Floyds 99 has designated or approved. If a franchisee wishes to use a supplier that is not already approved, they must notify Floyds 99 and obtain written approval in advance.
The notification to Floyds 99 must include sufficient specifications, photographs, drawings, and other information to allow Floyds 99 to determine whether the items or suppliers meet their standards. The franchisee is responsible for reimbursing Floyds 99 for the actual cost of any testing and the reasonable cost of investigation required to assess the proposed supplier. Floyds 99 will generally not withhold approval of a supplier if they meet the company's published standards and specifications, except for suppliers or vendors who are the only approved or designated sources.
Floyds 99 will notify the franchisee in writing within 30 days of receiving the request if they reject a proposed supplier. Floyds 99 retains the right to change the published standards regarding any approved supplier or any inventory, equipment, supplies, or services used, offered for sale, or leased by franchisees, provided they give 30 days' written notice to all franchisees and approved suppliers. Floyds 99 may also revoke approval of a supplier with 30 days' prior written notice.