Is Mr. Sandless required to approve an unreasonable number of suppliers for a given item?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing herein shall require us to approve an unreasonable number of suppliers for a given item, which approval might, in our reasonable judgment, result in higher costs or prevent the effective or economical supervision of approved suppliers.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless is not required to approve an unreasonable number of suppliers for any given item. The FDD states that Mr. Sandless has the discretion to avoid approving a large number of suppliers if it believes that doing so might increase costs or hinder the effective supervision of those suppliers.
This clause protects Mr. Sandless from being forced to approve numerous suppliers, which could potentially compromise quality control and operational efficiency within the Mr. Sandless system. It allows Mr. Sandless to maintain a manageable and cost-effective supply chain by limiting the number of approved suppliers.
For a prospective franchisee, this means that the choice of suppliers may be limited to those already approved by Mr. Sandless. While franchisees can propose new suppliers, Mr. Sandless has the right to deny approval if it deems the number of suppliers for a particular item to be unreasonable. This could impact a franchisee's ability to source supplies from their preferred vendors or negotiate better pricing, as they are restricted to using approved suppliers. Franchisees should inquire about the existing approved supplier list and the process for proposing new suppliers to fully understand their options and any potential limitations.