If I don't purchase inventory, supplies, or equipment from Chocolate Bash, where must I purchase them?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
and Equipment. You must purchase inventory, supplies and some of the equipment from us. For items which are not purchased from us, you will purchase from approved suppliers.
Us or our Affiliates as Supplier
We are a supplier of some of the goods and inventory which you must purchase.
These are the items which will be purchased directly from us:
- 1- Pancake mix
- 2- Waffle mix
- 3- Crepe mix
- 4- Belgium chocolate ( milk-dark-white )
- 5- Pistachio spread
- 6- Karak tea
- 7- Turkish coffee
- 8- Uniforms for Staff
- 9 Specialty Dine In Plates
Ownership of Suppliers
Outside of your requirement to purchase some items directly from us or our Affiliates, None of our officers owns an interest in any supplier to our franchisees.
Alternative Suppliers
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 required to purchase certain inventory, supplies, and equipment directly from Chocolate Bash. However, for items not purchased directly from Chocolate Bash, franchisees must purchase them from Chocolate Bash-approved suppliers.
If a franchisee wishes to use a supplier not already on Chocolate Bash's approved list, they must request written approval from Chocolate Bash. Chocolate Bash will then evaluate the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability, and will notify the franchisee of their decision within 30 days. Chocolate Bash may also modify existing approved suppliers by updating their manual or providing written notice.
Chocolate Bash estimates that required purchases and leases to establish your business is 50% - 70% of your total purchases and leases to establish your business. Also, Chocolate Bash estimates that the required purchases and leases of goods and services to operate your business is 50% to 60% of your total purchases and leases of goods and services to operate your business. In 2023, Chocolate Bash derived $10,387 and 5% of its total revenue from required purchases and leases.
This arrangement allows Chocolate Bash to maintain quality control and consistency across all franchise locations. However, it also limits the franchisee's ability to negotiate prices or source products from their preferred vendors. Prospective franchisees should consider these restrictions and discuss any concerns with Chocolate Bash before signing the franchise agreement.