Can Chocolate Bash require franchisees to purchase computer hardware and software from Chocolate Bash-approved suppliers?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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- C. Point-of-sale software and hardware, and related software and hardware. You must purchase (or lease) the point-of-sale software and hardware, and related software and hardware, that we specify. See Item 11 for more details.
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We issue specifications and standards to you for applicable aspects of the franchise in our Manual and/or in written directives. We may issue new specifications and standards for any aspect of our brand system, or modify existing specifications and standards, at any time by revising our Manual and/or issuing new written directives (which may be communicated to you by any method we choose). We will generally (but are not obligated to) issue new or revised specifications only after thorough testing in our headquarters, in company-owned outlets, and/or a limited market test in multiple units.
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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.
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, Chocolate Bash has the right to mandate that franchisees procure computer hardware and software, including point-of-sale systems, either from Chocolate Bash itself, its designees, or from suppliers that Chocolate Bash has approved.
This requirement ensures that all Chocolate Bash locations operate with standardized and compatible technology systems. Specifically, franchisees must purchase or lease the point-of-sale software and hardware, and related software and hardware, that Chocolate Bash specifies. Item 11 of the FDD provides further details on these requirements.
Chocolate Bash also maintains the right to issue new specifications and standards for any aspect of its brand system, or modify existing specifications and standards, at any time by revising its Manual and/or issuing new written directives. These directives may be communicated to franchisees through any method Chocolate Bash chooses. While Chocolate Bash generally tests new or revised specifications, it is not obligated to do so.
If a franchisee wishes to use a supplier not already approved by Chocolate Bash, they must request written approval. Chocolate Bash will then evaluate the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability. Chocolate Bash will provide written notification of approval or disapproval within 30 days of the request. There is no fee for Chocolate Bash to review or approve an alternate supplier.