What is the process for a Hyper Kidz franchisee to request approval for a product or 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, lease, or use products or purchase from a supplier not already approved, they must submit a written request for approval. Alternatively, the supplier can submit the request. Hyper Kidz requires written approval before any purchases are made from the new supplier or of the new product.
Hyper Kidz has the right to inspect the supplier's facilities and request samples for testing, either by Hyper Kidz or an independent laboratory. Hyper Kidz also retains the right to re-inspect approved suppliers and revoke approval if the supplier no longer meets their standards. The franchisee or supplier is responsible for reimbursing Hyper Kidz for the evaluation costs, up to $500.
Hyper Kidz will notify the franchisee of their decision within 60 days after completing the inspection and evaluation process. While Hyper Kidz's supplier approval procedure does not obligate them to approve any particular supplier, they may negotiate purchase arrangements, including price terms, with approved suppliers on behalf of the entire Hyper Kidz system. However, Hyper Kidz is not required to disclose the criteria for product or supplier approval if they deem it confidential.