Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 11
We or our affiliate will make available to you for sale, or designate or approve other suppliers who shall make available to you for sale, products and supplies as we designate in the Manual or in writing (Franchise Agreement, Section 3.7).
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may at any time revoke our approval of particular products or suppliers when we determine, in our sole discretion, that such products or suppliers no longer meet our standards.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
We derived no revenues during our fiscal year ending December 31, 2024 as a result of franchisee required purchases.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We may receive money or other benefits from approved or designated suppliers as a result of your purchases.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
100Item 8
We estimate that 100% of your expenditures for leases and purchases in establishing your Franchised Business and on an ongoing basis will be for goods and services which are subject to sourcing restrictions (that is, for which suppliers must be approved by us, or which must meet our standards or specifications).
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
You must pay the reasonable costs of the evaluation and testing 8 of the proposed supplier.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you desire to purchase products from a party other than an approved supplier, you must submit to us a written request to approve the proposed supplier, together with evidence of conformity with our specifications as we may require.