From whom must a Chocolate Fish Coffee franchisee purchase operating equipment and supplies?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
E. Equipment and Supplies. You must purchase specific equipment and supplies from us directly. You will also purchase equipment and supplies from our approved vendors and suppliers according to our standards and specifications.
Us or our Affiliates as Supplier
We are currently a supplier of the coffee products and select equipment and supplies you must purchase. We reserve the right to be a supplier (or the sole supplier) of a good or service in the future.
Ownership of Suppliers
Outside of your requirement to purchase coffee inventory and some of your operating equipment and supplies from us directly, none of our officers owns an interest in any supplier to our franchisees.
Alternative Suppliers
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 5 — INITIAL FEES (FDD pages 9–10)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, franchisees are required to purchase specific equipment and supplies directly from Chocolate Fish Coffee. Additionally, franchisees must also purchase equipment and supplies from Chocolate Fish Coffee's approved vendors and suppliers, adhering to the franchisor's standards and specifications.
Chocolate Fish Coffee identifies itself as a supplier of coffee products and select equipment and supplies. The company retains the right to become the sole supplier for certain goods and services in the future. However, the FDD states that outside of the requirement to purchase coffee inventory and some operating equipment and supplies directly from Chocolate Fish Coffee, none of the company's officers owns an interest in any supplier to the franchisees.
If a Chocolate Fish Coffee franchisee wishes to use a supplier not already on the approved list, they must seek written approval from Chocolate Fish Coffee. The franchisor will assess the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability, and will provide a decision within 30 days of the request. Chocolate Fish Coffee may also modify existing supplier approvals by written notice or updates to their manual.