Are the criteria Chocolate Bash uses for approving suppliers available to franchisees?
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, franchisees are not privy to the specific criteria used for approving suppliers. While franchisees can request approval for alternative suppliers, Chocolate Bash retains the discretion to grant or revoke these approvals based on factors like the supplier's capacity, quality, financial stability, reputation, and reliability, as well as inspections, product testing, and performance reviews.
This means that a prospective Chocolate Bash franchisee does not have a guaranteed insight into the standards a supplier must meet. This lack of transparency could make it challenging for franchisees to find and propose alternative suppliers, as they would be operating without knowing the specific benchmarks Chocolate Bash uses.
Chocolate Bash will provide written notification of approval or disapproval within 30 days of the request. Chocolate Bash can also modify supplier approvals by written notice or by updating their manual. This gives Chocolate Bash the flexibility to change supplier requirements, potentially impacting a franchisee's existing supply chain. Franchisees need to rely on Chocolate Bash's assessment and communication regarding approved suppliers, which introduces a level of dependence on the franchisor's decisions.