What is the definition of an 'Approved Vendor' for the Chocolate Fish Coffee franchise?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
the System to Franchisee for Franchisee to develop and operate a Chocolate Fish Coffee business on the terms and conditions of this Agreement.
ARTICLE 1. DEFINITIONS
- "Action" means any action, suit, proceeding, claim, demand, governmental investigation, governmental inquiry, judgment or appeal thereof, whether formal or informal.
- "Approved Vendor" means a supplier, vendor, or distributor of Inputs which has been approved by Chocolate Fish Franchising.
- "Business" means the Chocolate Fish Coffee business owned by Franchisee and operated under this Agreement.
- "Competitor" means any business which offers products or services the same or similar as the franchise brand.
- "Confidential Information" means all non-public information of or about the System, Chocolate Fish Franchising, and any Chocolate Fish Coffee business, including all methods for developing and operating the Business, and all non-public plans, data, financial information, processes, vendor pricing, supply systems, marketing systems, formulas, techniques, designs, layouts, operating procedures, customer data, information and know-how.
- "Gross Sales" means the total dollar amount of all sales generated through the Business for a given period, including, but not limited to, payment for any services or products sold by Franchisee, whether for cash or credit. Gross Sales does not include (i) bona fide refunds to customers, (ii) sales taxes collected by Franchisee, (iii) sales of used equipment not in the ordinary course of business, or (iv) sales of prepaid cards or similar products (but the redemption of any such card or product will be included in Gross Sales).
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, an 'Approved Vendor' is defined as a supplier, vendor, or distributor of inputs that has been approved by Chocolate Fish Franchising. Inputs are any goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the Chocolate Fish Coffee business.
Chocolate Fish Coffee may require franchisees to purchase or lease inputs from Chocolate Fish Franchising, Chocolate Fish Franchising's designee, required vendors, approved vendors, and/or under Chocolate Fish Franchising's specifications. Chocolate Fish Coffee also retains the right to change any such requirement or change the status of any vendor by issuing the appropriate system standards.
If Chocolate Fish Coffee requires a franchisee to purchase a particular input only from an approved vendor or required vendor, and the franchisee desires to purchase the input from another vendor, the franchisee must submit a written request for approval and any information, specifications, and/or samples requested by Chocolate Fish Coffee. Chocolate Fish Coffee may condition its approval based on criteria such as the vendor's capacity, quality, financial stability, reputation, and reliability; inspections; product testing; and performance reviews. Chocolate Fish Coffee will provide written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of the franchisee's request.