If a Kidokinetics franchisee wants to use an unapproved supplier, what is the first step they must take?
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, if a franchisee desires to purchase, lease, or use any supplies, equipment, vehicles, or other items from an unapproved supplier, the first step is to submit a written request for approval to Kidokinetics. This request must be made before utilizing the unapproved supplier.
Kidokinetics requires this process to ensure that all supplies, equipment, and vehicles meet their standards and specifications, maintaining consistency and quality across all franchise locations. This requirement is common in franchising, as franchisors seek to protect their brand's reputation and ensure operational uniformity.
After the franchisee submits the written request, Kidokinetics has the right to inspect the supplier's facilities and request samples for testing, either directly or through an independent laboratory. Kidokinetics will then notify the franchisee of its decision within 60 calendar days after receiving all the necessary information to evaluate the product or service. The approval is based on Kidokinetics's sole discretion, and they are not obligated to approve any particular supplier.
This process ensures that Kidokinetics maintains control over its supply chain and the quality of goods and services used by its franchisees. While this can be beneficial in terms of brand consistency, it also means that franchisees have limited autonomy in choosing suppliers and must adhere to Kidokinetics's approval process.