How does Chocolate Fish Coffee Franchising define an 'Approved Vendor'?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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).
- "Input" means any goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the Business.
- "Location" means the location stated on the Location Acceptance Letter.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, an Approved Vendor is defined as a supplier, vendor, or distributor of Inputs that has been approved by Chocolate Fish Coffee Franchising. Inputs are defined as any goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the Business. Chocolate Fish Coffee may require franchisees to purchase or lease any Inputs from Chocolate Fish Coffee Franchising's designee, Required Vendors, Approved Vendors, and/or under Chocolate Fish Coffee Franchising's specifications. Chocolate Fish Coffee Franchising may change any such requirement or change the status of any vendor. To make such requirement or change effective, Chocolate Fish Coffee Franchising shall issue the appropriate System Standards.
If a Chocolate Fish Coffee franchisee desires to purchase a particular Input from a vendor that is not on the approved list, the franchisee must submit a written request for approval along with any information, specifications, and/or samples requested by Chocolate Fish Coffee Franchising. Chocolate Fish Coffee Franchising may condition its approval on criteria such as evaluations of the vendor's capacity, quality, financial stability, reputation, and reliability; inspections; product testing; and performance reviews. Chocolate Fish Coffee Franchising will provide written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of the franchisee's request.
Chocolate Fish Coffee Franchising may negotiate prices and terms with vendors on behalf of the System and may receive rebates, payments, or other consideration from vendors in connection with purchases by franchisees. However, Chocolate Fish Coffee Franchising is not liable to the franchisee for any claim or loss related to any product provided or service performed by any Approved Vendor or Required Vendor, including without limitation defects, delays, or unavailability of products or services. If Chocolate Fish Coffee Franchising or any vendor, supplier, or manufacturer of an item used or sold in the franchisee's Business issues a recall of such item or otherwise notifies the franchisee that such item is defective or dangerous, the franchisee must immediately cease using or selling such item and comply with all instructions from Chocolate Fish Coffee Franchising or the vendor, supplier, or manufacturer of such item with respect to such item, including without limitation the recall, repair, and/or replacement of such item.