Can Fly To Fit negotiate prices and terms with vendors on behalf of the Fly To Fit system?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.4 Purchasing. Fly To Fit Franchise may negotiate prices and terms with vendors on behalf of the System.
Fly To Fit Franchise may receive rebates, payments or other consideration from vendors in connection with purchases by franchisees.
Fly To Fit Franchise has the right (but not the obligation) to collect payments from Franchisee on behalf of a vendor and remit the payments to the vendor and to impose a reasonable markup or charge for administering the payment program.
Fly To Fit Franchise may implement a centralized purchasing system.
Fly To Fit Franchise may establish a purchasing cooperative and require Franchisee to join and participate in the purchasing cooperative on such terms and conditions as Fly To Fit Franchise may determine.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit has the option to negotiate prices and terms with vendors for the entire Fly To Fit system. This means that Fly To Fit can leverage the collective buying power of all its franchisees to potentially secure better deals on supplies and services. Fly To Fit may also receive rebates, payments, or other forms of compensation from vendors based on franchisee purchases.
Fly To Fit also has the right to collect payments from franchisees on behalf of vendors and remit those payments to the vendors. In doing so, Fly To Fit can impose a reasonable markup or charge for administering this payment program. Furthermore, Fly To Fit has the option to implement a centralized purchasing system or establish a purchasing cooperative that franchisees may be required to join and participate in, under the terms and conditions set by Fly To Fit.
As a Fly To Fit franchisee, you may be required to purchase certain inputs from specific vendors approved or required by Fly To Fit. If you wish to use an alternate vendor, you must submit a written request for approval to Fly To Fit, including any information, specifications, or samples requested by Fly To Fit. Fly To Fit will then notify you in writing of their decision within 30 days of receiving your request. However, Fly To Fit assumes no liability for any claims or losses related to products or services provided by approved vendors, including issues like defects, delays, or unavailability.