What rights does the Kidokinetics franchisor have regarding the inspection of an unapproved supplier's facilities?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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 wants to use a supplier that Kidokinetics hasn't approved, the franchisee must ask Kidokinetics for permission in writing before using them. Kidokinetics can then ask to check out the supplier's facilities and get samples to test themselves or through an independent lab. Kidokinetics gets to decide if the supplier meets their standards.
This means a Kidokinetics franchisee can't just pick any supplier they want. They have to get approval first, and Kidokinetics has the power to investigate and decide if the supplier is good enough. This protects the Kidokinetics brand by making sure all suppliers meet certain standards.
Kidokinetics will then let the franchisee know if the supplier is approved or not within 60 calendar days of receiving all the necessary information to evaluate the product or service. This process ensures that Kidokinetics maintains control over the quality of products and services associated with its brand, even when franchisees seek alternative suppliers.