Under what condition is a Fly To Fit franchisee permitted to contract with alternative suppliers?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We will grant or revoke approvals of suppliers based on criteria appropriate to the situation, which may include evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval. There is no fee for us to review or approve an alternate supplier. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you, or by updating our Manual.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, a franchisee is permitted to contract with alternative suppliers only if they request approval in writing from Fly To Fit and Fly To Fit grants that approval. Fly To Fit will assess the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability, potentially including inspections, product testing, and performance reviews. These criteria for approving suppliers are not disclosed to the franchisee. Fly To Fit will provide written notification of approval or disapproval within 30 days of the request. Approvals can be granted or revoked via written notice or updates to the Fly To Fit manual.
This means that while Fly To Fit franchisees are not strictly limited to only using approved suppliers, they must go through a formal approval process for any alternative supplier they wish to use. This process ensures that all suppliers meet Fly To Fit's standards for quality and reliability, which helps maintain consistency across all franchise locations. However, the lack of transparency regarding the specific criteria used for approval could make it difficult for franchisees to anticipate whether a supplier will be approved.
It is common in franchising for franchisors to maintain control over the supply chain to ensure quality and consistency. Fly To Fit retains the right to modify supplier specifications and standards at any time, which could impact a franchisee's ability to continue using an alternative supplier. Franchisees should be aware that Fly To Fit can change these standards by revising the manual or issuing written directives.
Prospective Fly To Fit franchisees should inquire about the specific factors that Fly To Fit considers when evaluating alternative suppliers. Understanding these factors can help franchisees make informed decisions about potential suppliers and navigate the approval process more effectively. Franchisees should also clarify whether Fly To Fit receives any payments from approved suppliers, as this could influence the franchisor's decision-making process.