Can the Floyds 99 franchisor charge the franchisee for the investigation of a new supplier?

According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees may be responsible for covering the costs associated with investigating and approving new suppliers. Specifically, if a franchisee wishes to use a supplier not already approved by Floyds 99, they must request approval from the franchisor.

Floyds 99, in determining whether to approve the new supplier, may require samples for testing. The brand can then charge the franchisee a fee to cover the reasonable cost of the investigation into the proposed supplier. This fee is paid by the franchisee.

This policy ensures that all products, equipment, and services used at Floyds 99 locations meet the franchisor's standards and specifications, maintaining consistency across all franchises. It also means that franchisees need to factor in potential investigation costs when considering alternative suppliers, as these costs can impact their overall expenses. The franchisor is expected to act reasonably and not unduly withhold approval, but the franchisee bears the financial risk of the investigation.