What entities might CB Franchising designate for a Chocolate Bash franchisee to purchase or lease inputs from?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
"Approved Vendor" means 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.
"Required Vendor" means a supplier, vendor, or distributor of Inputs which CB Franchising requires franchisees to use.
(b) Pre-Opening Plans, Specifications, and Vendors. Within a reasonable period of time after the Effective Date, CB Franchising shall provide Franchisee with (i) CB Franchising's sample set of standard building plans and specifications and/or standard recommended floor plans; (ii) the applicable System Standards, (iii) other specifications as CB Franchising deems appropriate (which may include specifications regarding inventory, supplies, materials, and other matters), and (iv) CB Franchising's lists of Approved Vendors and/or Required Vendors.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees may be required to purchase or lease inputs from 'Required Vendors'. These Required Vendors are defined as suppliers, vendors, or distributors of goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, or real estate that Chocolate Bash mandates franchisees to use.
Chocolate Bash also maintains a list of 'Approved Vendors,' which are suppliers, vendors, or distributors of inputs that have been approved by Chocolate Bash. While franchisees are required to use Required Vendors, using Approved Vendors may be optional.
During the pre-opening phase, Chocolate Bash will provide franchisees with lists of both Approved Vendors and Required Vendors. This allows Chocolate Bash to maintain quality control and standardization across all franchise locations, while potentially providing franchisees with access to negotiated pricing and terms. However, it also limits the franchisee's autonomy in choosing suppliers and potentially reduces their ability to find lower-cost alternatives.