Under what condition is a Chocolate Bash franchisee permitted to contract with alternative suppliers?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
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 permitted to contract with alternative suppliers only if they request approval in writing from Chocolate Bash and Chocolate Bash grants that approval. The approval process involves Chocolate Bash evaluating the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability, as well as potentially conducting inspections, product testing, and performance reviews.
Chocolate Bash's criteria for approving suppliers are not disclosed to franchisees. There is no fee for Chocolate Bash to review or approve an alternate supplier. Chocolate Bash will provide written notification of the approval or disapproval of a proposed supplier within 30 days after receiving the franchisee's request.
Chocolate Bash retains the right to grant approvals of new suppliers or revoke past approvals of suppliers by providing written notice to the franchisee or by updating its Manual. This means that even if a supplier is initially approved, Chocolate Bash can later require franchisees to switch back to approved suppliers, giving Chocolate Bash significant control over the supply chain and potentially impacting a franchisee's costs and sourcing options.