factual

How may Chocolate Fish Coffee grant approvals of new suppliers to Chocolate Fish Coffee franchisees?

Chocolate_Fish_Coffee Franchise · 2024 FDD

Answer 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.

Issuing Specifications and Standards

We issue specifications and standards to you for applicable aspects of the franchise in our Manual and/or in written directives. We may issue new specifications and standards for any aspect of our brand system, or modify existing specifications and standards, at any time by revising our Manual and/or issuing new written directives (which may be communicated to you by any method we choose). We will generally (but are not obligated to) issue new or revised specifications only after thorough testing in our headquarters, in company-owned outlets, and/or a limited market test in multiple units.

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, franchisees who wish to use a supplier not already on the approved list must request approval in writing from Chocolate Fish Coffee. Chocolate Fish Coffee will then decide whether to grant or revoke approval based on criteria such as the supplier's capacity, quality, financial stability, reputation, and reliability. These criteria may also include inspections, product testing, and performance reviews. The specific criteria used for approving suppliers are not disclosed to franchisees.

If a franchisee's request for an alternative supplier is approved, Chocolate Fish Coffee will provide written notification of the approval or disapproval within 30 days of receiving the request. There is no fee for Chocolate Fish Coffee to review or approve an alternate supplier.

Chocolate Fish Coffee may grant approvals of new suppliers or revoke existing approvals by providing written notice to franchisees or by updating the Brand Standards Manual. New or revised specifications and standards are generally issued after thorough testing at headquarters, in company-owned outlets, and/or through limited market tests in multiple units, although Chocolate Fish Coffee is not obligated to do so.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.