Are the criteria Chocolate Fish Coffee uses for approving suppliers available to franchisees?
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, the criteria used for approving suppliers are not available to franchisees. While franchisees can request approval for alternative suppliers, Chocolate Fish Coffee retains the discretion to grant or revoke approvals based on factors like the supplier's capacity, quality, financial stability, reputation, and reliability, as well as inspections, product testing, and performance reviews.
This means that a prospective Chocolate Fish Coffee franchisee does not have explicit insight into the specific standards a supplier must meet. While the franchisee can suggest alternative suppliers, Chocolate Fish Coffee ultimately decides whether to approve them. This lack of transparency could make it difficult for franchisees to find and suggest alternative suppliers, as they won't know the precise criteria Chocolate Fish Coffee uses.
Chocolate Fish Coffee will provide written notification of the approval or disapproval of a proposed supplier within 30 days of the request. Approvals can be granted or revoked via written notice or by updating the Brand Standards Manual. Franchisees should be aware that Chocolate Fish Coffee can change supplier approvals at any time, potentially impacting their supply chain and costs.