Tutorial 12: Intro to Approved Suppliers

One of the great things about opening your business via franchising is the peace of mind and confidence that comes with knowing the products, equipment and supplies you use to successfully run your operations meet the high standards of your franchisor.

What does that mean exactly? Well, all franchisors will find and approve suppliers – or supply chains – to provide products to their entire franchisee network. By doing so, they are ensuring customers receive a consistent experience across all franchise locations, which in turn, reinforces their brand.

Under the franchise agreement, you as a franchisee are required to purchase your business products and supplies from designated and approved suppliers. After all, the franchisor has selected these suppliers knowing they will enhance their brand’s integrity and, ultimately, help you succeed.

So, what exactly do franchisors look for when approving suppliers?

  • Are they receiving high quality products?
  • Is the pricing competitive?
  • How long does it take to order and receive products?
  • Will the supplier provide regular training on products/equipment to franchisees?
  • Is there merchandising assistance for franchisees?
  • What is the warranty policy?
  • Is there a time frame for taking back faulty products/equipment?
  • What is the delivery schedule and charges?
  • What are the payment terms?

Though franchisors are the ones who select and approve suppliers, that doesn’t mean that you can’t find your own. If you find a supplier that you believe is superior to the current suppliers, do not hesitate to send this information to your franchisor. They will then decide whether or not they will add them to the approved supplier list.

And even if you never find a supplier on your own, you can still share your opinions on the suppliers your franchisor has selected. Typically, franchisors will ask franchisees to fill out a supplier evaluation questionnaire or will accept written evaluations on the quality and performance of their suppliers.

Ultimately, approved suppliers benefit the entire franchise system as a whole. They provide consistency across the brand, provide franchisees with discounted prices and additional support and training, and ensure you don’t have to spend valuable time shopping for products for your business.

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Disclaimer
The opinions or viewpoints expressed herein do not necessarily reflect those of the Canadian Franchise Association (CFA). Where materials and content were prepared by persons and/or entities other than the CFA, the said other persons and/or entities are solely responsible for their content. The information provided herein is intended only as general information that may or may not reflect the most current developments. The mention of particular companies or individuals does not represent an endorsement by the CFA. Information on legal matters should not be construed as legal advice. Although professionals may prepare these materials or be quoted in them, this information should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought.