What must a Hyper Kidz franchisee do if they want to purchase from an unapproved supplier?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
use any advertising materials that we have not approved.
If you wish to purchase, lease or use any products or other items, or purchase from an unapproved supplier, you must submit a written request for approval, or must request the supplier to do so. We must approve any product or supplier in writing before you make any purchases of that product or from that supplier. We can require that our representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered either to us or to an independent laboratory for testing. We have
the right to re-inspect the facilities and products of any approved supplier and to revoke our approval if the supplier fails to continue to meet any of our then-current standards. You or the supplier must reimburse our costs for our evaluation of the proposed product or supplier (up to $500). Our supplier approval procedure does not obligate us to approve any particular supplier. We will notify you within 60 days after we complete the inspection and evaluation process of our approval or disapproval of any proposed supplier. We are not required to make available to you or to any supplier the criteria for product or supplier approval that we deem confidential.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a franchisee who wishes to purchase from an unapproved supplier must first seek approval from Hyper Kidz. This involves submitting a written request, either directly or through the supplier. Hyper Kidz retains the right to evaluate and approve the supplier before any purchases are made.
Hyper Kidz may require its representatives to inspect the supplier's facilities and request samples for testing, either by Hyper Kidz or an independent laboratory. The franchisee or the supplier is responsible for reimbursing Hyper Kidz for the costs associated with evaluating the proposed product or supplier, up to a maximum of $500. However, the approval procedure does not guarantee that Hyper Kidz will approve any particular supplier.
Hyper Kidz will notify the franchisee of its decision within 60 days after completing the inspection and evaluation process. Hyper Kidz is not obligated to disclose the specific criteria for product or supplier approval if it deems them confidential. This process ensures that all products and services used in the Hyper Kidz franchise meet the franchisor's standards, maintaining consistency and quality across all locations.