What happens if a Hyper Kidz supplier fails to continue to meet Hyper Kidz's standards?
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, Hyper Kidz retains the right to re-inspect the facilities and products of any approved supplier. If a supplier fails to continue meeting Hyper Kidz's standards, Hyper Kidz can revoke its approval of that supplier.
This means that Hyper Kidz franchisees are required to adhere to the approved supplier list and maintain the standards and specifications set by the franchisor. If a previously approved supplier's products or services no longer meet Hyper Kidz's standards, franchisees will be required to switch to an alternative approved supplier. This ensures consistency and quality across all Hyper Kidz locations, but it also limits the franchisee's autonomy in choosing suppliers.
If a franchisee wishes to use a product or supplier that is not already approved, they must submit a written request for approval. Hyper Kidz can require its representatives to inspect the supplier's facilities and test samples, with the franchisee or supplier bearing the costs of evaluation, up to $500. Hyper Kidz will notify the franchisee of its decision within 60 days after completing the inspection and evaluation process. This process does not obligate Hyper Kidz to approve any particular supplier, and the franchisor is not required to disclose the criteria for product or supplier approval if it deems them confidential.