How long does Hyper Kidz have to notify a franchisee of the approval or disapproval of a proposed 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, if a franchisee wishes to purchase from an unapproved supplier, they must submit a written request for approval. Hyper Kidz will then notify the franchisee of the approval or disapproval of the proposed supplier within 60 days after completing the inspection and evaluation process.
Hyper Kidz can require its representatives to inspect the supplier's facilities and test samples, with the franchisee or supplier reimbursing Hyper Kidz for evaluation costs up to $500. However, the approval procedure does not obligate Hyper Kidz to approve any particular supplier. Hyper Kidz also does not have to share the criteria for product or supplier approval if they deem it confidential.
This process highlights the importance of adhering to Hyper Kidz's standards and specifications to maintain quality and service. Franchisees should factor in this 60-day approval period when planning their supply chain and consider the potential costs associated with the evaluation of new suppliers. The franchisee bears the risk that a proposed supplier may be rejected, even after incurring evaluation costs.