Can Fly To Fit require franchisees to purchase Inputs under Fly To Fit's specifications?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
e shall comply with any code of ethics or statement of values from Fly To Fit Franchise. Franchisee shall not take any action which may injure the goodwill associated with the Marks.
ARTICLE 8. SUPPLIERS AND VENDORS
- 8.1 Generally. Franchisee shall acquire all Inputs required by Fly To Fit Franchise from time to time in accordance with System Standards. Fly To Fit Franchise may require Franchisee to purchase or lease any Inputs from Fly To Fit Franchise, Fly To Fit Franchise's designee, Required Vendors, Approved Vendors, and/or under Fly To Fit Franchise's specifications. Fly To Fit Franchise may change any such requirement or change the status of any vendor. To make such requirement or change effective, Fly To Fit Franchise shall issue the appropriate System Standards.
- 8.2 Alternate Vendor Approval. If Fly To Fit Franchise requires Franchisee to purchase a particular Input only from an Approved Vendor or Required Vendor, and Franchisee desires to purchase the Input from another vendor, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by Fly To Fit Franchise. Fly To Fit Franchise may condition its approval on such criteria as Fly To Fit Franchise deems appropriate, which may include evaluations of the vendor's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Fly To Fit Franchise will provide Franchisee with written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of Franchisee's request.
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 authority to mandate that franchisees procure specific inputs according to Fly To Fit's standards. This means Fly To Fit can dictate the precise requirements for items necessary to operate the franchise. These inputs can be purchased from Fly To Fit, their designee, required vendors, or approved vendors.
Fly To Fit also retains the right to modify these requirements or change the approved vendor list, ensuring franchisees adhere to the most current standards. These changes are communicated through updated System Standards. If a franchisee wishes to use an alternative input or vendor, they must seek approval from Fly To Fit, providing all necessary information and samples for evaluation. Fly To Fit will then notify the franchisee of their decision within 30 days.
Fly To Fit may also negotiate prices and terms with vendors on behalf of the entire franchise system and may receive financial benefits such as rebates or payments from these vendors based on franchisee purchases. Furthermore, Fly To Fit can implement a centralized purchasing system or establish a purchasing cooperative that franchisees are required to join. However, Fly To Fit assumes no liability for any issues related to products or services provided by approved or required vendors, including defects, delays, or unavailability.