factual

What are the requirements for a Floyds 99 franchisee to request approval of a new supplier?

Floyds_99 Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 14.6 Request to Approve Supplier.

If the Franchisee desires to purchase or use products, equipment, supplies, materials or services from suppliers other than those previously approved by the Franchisor, the Franchisee shall, prior to purchasing from or otherwise utilizing any supplier give the Franchisor a written request to approve the supplier.

If the Franchisor rejects the Franchisee's requested new supplier, the Franchisor must notify the Franchisee in writing within 30 days of Franchisor's receipt of the Franchisee's request to approve the supplier.

The Franchisor may continue from time to time to inspect any suppliers' facilities and products to assure compliance with the Franchisor's standards and specifications.

Permission for such inspection shall be a condition of the continued approval of such supplier.

The Franchisor will not unreasonably withhold approval of the supplier; however, in order to make such determination, the Franchisor may require that samples from a proposed new supplier be delivered to the Franchisor for testing prior to approval and use.

A charge not to exceed the reasonable cost of investigation may be made by the Franchisor and shall be paid by the Franchisee.

Source: Item 22 — CONTRACTS (FDD pages 57–58)

What This Means (2025 FDD)

According to the 2025 Floyds 99 Franchise Disclosure Document, if a franchisee wants to purchase or use products, equipment, supplies, materials, or services from a supplier not already approved by Floyds 99, they must first submit a written request for approval to the franchisor. This requirement ensures that all products and services used in the Floyds 99 system meet the franchisor's standards.

Floyds 99 has the right to inspect any supplier's facilities and products to ensure they comply with the franchisor's standards and specifications. Continued approval of a supplier is conditional upon allowing such inspections. Floyds 99 promises not to unreasonably withhold approval of a supplier. However, to make a determination, Floyds 99 may require samples from the proposed new supplier for testing before granting approval.

The franchisee may have to pay for the costs associated with the investigation to determine if the potential new products, services, materials, or supplies meet Floyds 99's standards. Floyds 99 will then advise the franchisee within a reasonable time whether the potential new products, services, materials, or supplies meet their specifications. If Floyds 99 rejects the franchisee's requested new supplier, Floyds 99 must notify the franchisee in writing within 30 days of receipt of the franchisee's request.

Disclaimer: This information is extracted from the 2025 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.