What criteria may Chocolate Fish Coffee use to grant or revoke approvals of suppliers?
Chocolate_Fish_Coffee 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 16–18)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, if a franchisee wants to use a supplier not already on the approved list, they must request written approval from Chocolate Fish Coffee. Chocolate Fish Coffee will grant or revoke supplier approvals based on criteria relevant to the specific situation. These criteria may include evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability. Chocolate Fish Coffee may also conduct inspections, product testing, and performance reviews of the potential supplier.
It is important to note that Chocolate Fish Coffee's specific criteria for approving suppliers are not disclosed to franchisees. Franchisees will receive written notification of approval or disapproval within 30 days of their request. Chocolate Fish Coffee can grant or revoke supplier approvals by providing written notice to the franchisee or by updating their manual.
This policy gives Chocolate Fish Coffee significant control over the supply chain, ensuring quality and consistency across all franchise locations. However, it also means franchisees have limited flexibility in choosing suppliers and may be subject to Chocolate Fish Coffee's decisions, even without knowing the exact criteria used. Prospective franchisees should consider this when evaluating the franchise opportunity, as it could impact their operating costs and ability to source specific products or services.