Who bears the costs or expenses incurred in approving a supplier for Punch King Fitness?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
To approve a supplier, we require a sample of the product(s), information regarding the product or service's quality standards, availability, terms and conditions of purchase, and other information we may request. If desired, we may request a physical inspection of the supplier's place of business or manufacturing facility. Upon submitting samples and information required for approval, we will notify you within 30 days of our approval or disapproval of a supplier. As a condition of approval, we require reimbursing any costs or expenses we incur in approving the supplier. We may revoke the approval of any supplier upon 30 days' written notice to franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–25)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the franchisee is responsible for reimbursing any costs or expenses that Punch King Fitness incurs while approving a supplier. This means that if a franchisee wants to use a supplier that is not already approved, they will have to cover the costs of Punch King Fitness's evaluation of that supplier.
This could include expenses related to product sampling, inspections of the supplier's facilities, and any other due diligence activities that Punch King Fitness deems necessary. The FDD states that Punch King Fitness will notify the franchisee of the approval or disapproval of a supplier within 30 days of submitting the required samples and information.
This requirement could potentially add to the franchisee's operating costs, especially if they seek to use alternative suppliers. Franchisees should factor in these potential costs when considering their budget and supplier options. It is also important to note that Punch King Fitness can revoke the approval of any supplier with 30 days' written notice to franchisees, which could force franchisees to find and pay for the approval of a new supplier.