What criteria may Ella Cafe use to grant or revoke approvals of suppliers?
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.
You may purchase items and services for which we have not identified approved suppliers from any supplier, if the items and services meet our specifications. These specifications may include brand requirements. If brand requirements have been identified, you may purchase and use only approved brands.
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, if a franchisee proposes to purchase items from a supplier not already approved by Ella Cafe for use in their coffee house, they must seek written approval from Ella Cafe. Ella Cafe will assess suppliers based on criteria relevant to the specific situation.
These criteria may include an evaluation of the supplier's capacity to meet demand, the quality of their products or services, their financial stability to ensure consistent supply, their business reputation, and their overall reliability. Ella Cafe may also conduct inspections of the supplier's facilities, perform product testing to ensure it meets Ella Cafe's standards, and review the supplier's past performance with other clients.
Ella Cafe's specific criteria for approving suppliers are not disclosed to franchisees. Ella Cafe will provide written notification of approval or disapproval within 30 days of the request. Approvals can be granted or revoked at any time via written notice or updates to the Ella Cafe Manual. Franchisees are permitted to source from alternative suppliers who meet Ella Cafe's criteria, but only after written approval has been granted.
For items and services where Ella Cafe has not specified approved suppliers, franchisees can purchase from any supplier, provided the items and services meet Ella Cafe's specifications, which may include specific brand requirements. If brand requirements are in place, only approved brands can be used.