Does Chocolate Bash require franchisees to purchase Belgium chocolate (milk-dark-white) directly from them?

According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees are required to purchase Belgium chocolate (milk-dark-white) directly from Chocolate Bash. This is explicitly listed among other items such as pancake mix, waffle mix, crepe mix, pistachio spread, Karak tea, Turkish coffee, staff uniforms, and specialty dine-in plates that franchisees must purchase directly from Chocolate Bash.

This requirement ensures that Chocolate Bash maintains control over the quality and consistency of key ingredients and products used in its franchise locations. While franchisees are obligated to purchase these specific items from Chocolate Bash, they have the option to seek approval for alternative suppliers for other goods and services. To do so, a franchisee must submit a written request for approval, and Chocolate Bash will evaluate the proposed supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability. Chocolate Bash will provide a written notification of approval or disapproval within 30 days of the request.

Chocolate Bash also has the right to modify existing specifications and standards at any time by revising their manual or issuing new written directives. These changes will generally occur after thorough testing at Chocolate Bash headquarters, company-owned outlets, or limited market tests in multiple units. This allows Chocolate Bash to adapt to changing market conditions and maintain brand standards across all franchise locations.

The 2024 FDD also indicates that Chocolate Bash derives revenue from these required purchases. Specifically, they derived $10,387 and 5% of their total revenue from required purchases and leases. The estimated required purchases and leases to establish the business account for 50% to 70% of the total, while operating purchases and leases represent 50% to 60% of the total. While Chocolate Bash does not currently receive payments from designated suppliers, the franchise agreement does not prohibit them from doing so in the future.