What criteria might Chocolate Bash use to approve or revoke approvals of suppliers?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We will grant or revoke approvals of suppliers based on criteria appropriate to the situation, which may include evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval. There is no fee for us to review or approve an alternate supplier. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you, or by updating our Manual.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–17)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, if a franchisee wants to use a supplier that is not on Chocolate Bash's list of approved suppliers, they must request approval in writing. Chocolate Bash will grant or revoke approvals of suppliers based on criteria appropriate to the situation.
The criteria Chocolate Bash uses may include evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability. Chocolate Bash may also conduct inspections, product testing, and performance reviews. However, the specific criteria for approving suppliers are not available to prospective franchisees.
Chocolate Bash will provide written notification of the approval or disapproval of any supplier within 30 days after receiving the request. Approvals of new suppliers can be granted, and past approvals of suppliers can be revoked, with written notice to the franchisee or by updating the Chocolate Bash manual. This gives Chocolate Bash significant control over the supply chain and ensures that franchisees meet their standards, although the lack of transparency regarding the specific criteria could be a concern for franchisees seeking flexibility in sourcing.