Is a Chocolate Bash franchisee required to purchase equipment from the franchisor?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
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Generally
We have the right to require you to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating your business (1) either from us or our designee, or from suppliers approved by us, or (2) according to our specifications.
Specific Obligations
The following are our current specific obligations for purchases and leases:
- A. Real Estate. Your business location is subject to our approval and must meet our specifications.
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 required to purchase some equipment from Chocolate Bash. Item 8 clarifies that Chocolate Bash has the right to require franchisees to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating their business either from Chocolate Bash or their designee, or from approved suppliers, or according to Chocolate Bash's specifications.
Specifically, franchisees must purchase inventory, supplies, and some equipment directly from Chocolate Bash. For items not purchased from Chocolate Bash, franchisees must purchase them from approved suppliers. This requirement ensures that Chocolate Bash maintains control over the quality and consistency of products and services offered at all franchise locations.
While the FDD specifies that some equipment must be purchased from Chocolate Bash, it does not provide a comprehensive list of exactly which equipment items this includes. Prospective franchisees should seek clarification from Chocolate Bash regarding a detailed list of required equipment and approved suppliers during their due diligence.