Can CB Franchising negotiate prices with vendors on behalf of the Chocolate Bash system?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
"Required Vendor" means a supplier, vendor, or distributor of Inputs which CB Franchising requires franchisees to use.
"System Standards" means, as of any given time, the then-current mandatory procedures, requirements, and/or standards of the System as determined by CB Franchising, which may include without limitation, any procedures, requirements and/or standards for appearance, business metrics, cleanliness, customer service, design (such as construction, decoration, layout, furniture, fixtures and signs), equipment, inventory, marketing and public relations, operating hours, presentation of Marks, product and service offerings, quality of products and services (including any guaranty and warranty programs), reporting, safety, technology (such as computers, computer peripheral equipment, smartphones, point-of-sale systems, back-office systems, information management systems, security systems, video monitors, other software, backup and archiving systems, communications systems (including email, audio, and video systems), payment acceptance systems, and internet access, as well as upgrades, supplements, and modifications thereto), uniforms, and vehicles.
"Territory" means the territory stated on the Summary Page. If no territory is stated on the Summary Page, then the Territory is determined in accordance with Section 6.1.
"Transfer" means for Franchisee (or any Owner) to voluntarily or involuntarily transfer, sell, or dispose of, in any single or series of transactions, (i) substantially all of the assets of the Business, (ii) this Agreement, (iii) direct or indirect ownership interest of more than 25% of the Business, or (iv) control of the Business.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, it is not clear whether CB Franchising negotiates prices with vendors on behalf of the Chocolate Bash system. However, the FDD does state that CB Franchising may provide franchisees with lists of Approved Vendors and/or Required Vendors.
According to the FDD, a "Required Vendor" is defined as a supplier, vendor, or distributor of Inputs which CB Franchising requires franchisees to use. An "Approved Vendor" is defined as a supplier, vendor, or distributor of Inputs which has been approved by CB Franchising. "Input" means any goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the Business.
While CB Franchising may provide franchisees with a list of approved or required vendors, the FDD does not state whether CB Franchising negotiates prices with these vendors on behalf of the Chocolate Bash system. A prospective franchisee should clarify with CB Franchising whether they negotiate prices with vendors.