Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
You must purchase all spaghetti sauces, pizza sauce spices, cheeses, sausages, pizza dough, spice blends, and paper products used at the Restaurant from us, an affiliate, or a supplier we designate or approve.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may revoke our approval of particular products or suppliers at any time we determine that such products or suppliers no longer meet our standards in our sole discretion.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We negotiate purchase arrangements with some or all of our approved or designated suppliers and 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?
95Item 8
We estimate that 95% of your expenditures for leases and purchases in establishing the Restaurant and on an ongoing basis will be for goods and services that 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 costs of our evaluation and testing 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 a written request to us to approve the proposed supplier with evidence of conformity with our specifications as we may require.