Can a Kidokinetics franchisee purchase or lease from a supplier before the franchisor provides written approval?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.5.
Unapproved Suppliers.
If Franchisee desires to purchase, lease or use any supplies, equipment, vehicles or other items of any nature or kind from an unapproved supplier, Franchisee will submit to Franchisor a written request for such approval prior to utilizing such supplier.
Franchisee will not purchase or lease from any supplier until and unless such supplier has been approved in writing by Franchisor.
Franchisor will have the right to require that its representatives be permitted to inspect the supplier's facilities, and that samples from the supplier be delivered, either to Franchisor or to an independent laboratory designated by Franchisor for testing.
If the supplier or manufacturer meets Franchisor's specifications, as determined in Franchisor's sole discretion, Franchisor will approve it as an additional supplier or manufacturer.
Franchisor will notify Franchisee whether Franchisor approves or disapproves of the proposed supplier or manufacturer within 60 calendar days after Franchisor receives all required information to evaluate the product or service.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee cannot purchase or lease from a supplier until the franchisor has provided written approval. If a franchisee desires to purchase, lease, or use any supplies, equipment, vehicles, or other items from a supplier not already approved by Kidokinetics, the franchisee must first submit a written request for approval to the franchisor.
Kidokinetics retains the right to inspect the supplier's facilities and request samples for testing, either directly or through an independent laboratory. The franchisor will then determine if the supplier meets Kidokinetics's specifications at its sole discretion.
Kidokinetics will notify the franchisee of its decision regarding the proposed supplier within 60 calendar days after receiving all the necessary information to evaluate the product or service. The franchisor also reserves the right to re-inspect approved suppliers periodically and revoke approval if they fail to continue meeting the franchisor's current criteria. The franchisee may be required to cover the reasonable costs of evaluating any proposed supplier or product. This process ensures that all suppliers meet Kidokinetics's standards, maintaining consistency and quality across all franchise locations.