How may Ella Cafe grant approvals of new suppliers or revoke past 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.
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 wants to purchase items from a supplier not already approved by Ella Cafe, they must request approval in writing. Ella Cafe will then evaluate the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability, potentially including inspections, product testing, and performance reviews. It is important to note that 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 receiving the franchisee's request. There is no fee for Ella Cafe to review or approve an alternate supplier.
Ella Cafe retains the right to grant approvals to new suppliers or revoke previous approvals. This can be done either through written notice to the franchisee or by updating the Ella Cafe Manual. This means that franchisees need to stay informed of any changes to approved suppliers, as Ella Cafe can modify the list at any time.