Is the Karak tea that Chocolate Bash franchisees must purchase supplied by Chocolate Bash?

According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees are required to purchase Karak tea directly from Chocolate Bash. This is explicitly stated in Item 8, which lists items that franchisees must purchase directly from Chocolate Bash. Other items that Chocolate Bash franchisees must purchase directly from Chocolate Bash include pancake mix, waffle mix, crepe mix, Belgium chocolate, pistachio spread, Turkish coffee, staff uniforms, and specialty dine-in plates.

This requirement ensures that Chocolate Bash maintains control over the quality and consistency of key ingredients and products used in its franchise locations. By mandating that franchisees purchase these items directly from them, Chocolate Bash can standardize the taste and presentation of its menu offerings across all locations.

For a prospective franchisee, this means that a portion of their inventory must be sourced directly from Chocolate Bash, impacting their initial and ongoing operational costs. While this ensures quality control, it also limits the franchisee's ability to shop around for potentially lower prices or alternative suppliers for these specific items. However, franchisees do have the option to request approval for alternative suppliers for other goods, subject to Chocolate Bash's evaluation criteria.

Chocolate Bash estimates that required purchases and leases account for 50% to 70% of the total costs to establish the business and 50% to 60% of the total ongoing operational purchases and leases. In 2023, Chocolate Bash derived $10,387 and 5% of its total revenue from these required purchases and leases. While Chocolate Bash does not currently receive payments from designated suppliers, the franchise agreement does not prohibit them from doing so in the future.