Are Ella Cafe's criteria for approving suppliers available to franchisees?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
If you propose to purchase from an unapproved source any items for use in your Coffee House for which we have identified, designated, or approved supplier(s), 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 upon written notice to you, or by updating our Manual.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–22)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the specific criteria used to approve suppliers are not disclosed to franchisees. However, if a franchisee wishes to use a supplier not already approved by Ella Cafe, they must request written approval.
Ella Cafe will evaluate potential suppliers based on factors such as capacity, quality, financial stability, reputation, and reliability. They may also conduct inspections, product testing, and performance reviews. The franchisee will receive written notification of approval or disapproval within 30 days of the request.
Ella Cafe retains the right to approve new suppliers or revoke existing approvals, communicating these changes through written notice or updates to their Manual. Franchisees are permitted to purchase items and services from non-approved suppliers only if Ella Cafe has not identified approved suppliers for those items and services, and as long as the items and services meet Ella Cafe's specifications, including any brand requirements.
This policy ensures that Ella Cafe maintains control over the quality and consistency of products and services used in its franchise locations. While franchisees have the option to propose alternative suppliers, the final decision rests with Ella Cafe, and the specific evaluation criteria remain confidential.