Does Chocolate Bash require franchisees to purchase equipment from them?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
a franchise.
Item 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
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. You must use reasonable efforts to have your landlord sign our form of Rider to Lease Agreement (attached to this disclosure document as Exhibit D).
- B. Insurance.
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, while other equipment can be sourced from approved suppliers. Specifically, Chocolate Bash has the right to mandate that franchisees purchase or lease goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, and real estate either from Chocolate Bash or its designee, or from suppliers approved by them, or according to their specifications.
The FDD specifies that franchisees must purchase point-of-sale software and hardware, and related software and hardware, as specified by Chocolate Bash. Additionally, franchisees must purchase inventory, supplies, and some equipment directly from Chocolate Bash. For items not purchased from Chocolate Bash, franchisees are required to purchase from approved suppliers.
If a franchisee wishes to use a supplier not already on Chocolate Bash's approved list, they must request written approval. Chocolate Bash will grant or revoke approvals based on criteria such as the supplier's capacity, quality, financial stability, reputation, and reliability, including inspections, product testing, and performance reviews. Chocolate Bash will provide written notification of approval or disapproval within 30 days of the request. This system allows Chocolate Bash to maintain quality control and standardization across all franchise locations, while also providing some flexibility for franchisees to find suitable suppliers.