Is the Kidokinetics franchisor required to approve any particular supplier?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Nothing in the foregoing should be construed to require Franchisor to approve any particular supplier.
Franchisor reserves the right to require Franchisee to pay to Franchisor all reasonable costs of evaluation of any proposed supplier or proposed product or service.
- 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.
- 11.1.7.
Obtain and use only equipment, vehicles, products, supplies, business forms, signs, stationery, and services that conform to the current standards and specifications for the System as required by Franchisor and obtained from Franchisor's previously approved suppliers.
Franchisor has the right to terminate this Agreement if Franchisee uses any equipment, vehicles or products that do not conform to such standards and specifications, if Franchisee fails to obtain any equipment required by Franchisor, or if Franchisee purchases from suppliers that have not been previously approved in writing by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisor is not required to approve any particular supplier. However, if a franchisee desires to purchase from an unapproved supplier, they must submit a written request to Kidokinetics for approval. Franchisees cannot purchase or lease from any supplier until the supplier has been approved in writing by Kidokinetics.
Kidokinetics has 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, at its sole discretion, whether the supplier meets Kidokinetics's specifications. If the supplier meets the standards, Kidokinetics will approve them as an additional supplier.
Kidokinetics will notify the franchisee of its decision to approve or disapprove a proposed supplier within 60 calendar days after receiving all the necessary information to evaluate the product or service. Kidokinetics also reserves the right to re-inspect approved suppliers and revoke approval if they fail to continue meeting the franchisor's current criteria. Franchisee must use only equipment, vehicles, products, supplies, business forms, signs, stationery, and services that conform to the current standards and specifications for the System as required by Franchisor and obtained from Franchisor's previously approved suppliers.
This process ensures that Kidokinetics maintains quality control and uniformity across all franchise locations by regulating the sources from which franchisees obtain their supplies and equipment. While franchisees have the option to propose new suppliers, they must adhere to the franchisor's approval process and standards.