If an Ella Cafe franchisee proposes to purchase from an unapproved source, what must they do?
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 wants to purchase items for their coffee house from a source that is not already approved by Ella Cafe, they must first request written approval from Ella Cafe. This applies to any items for which Ella Cafe has already identified, designated, or approved specific suppliers.
Ella Cafe will then evaluate the proposed supplier based on criteria relevant to the situation. These criteria may include assessments of the supplier's capacity, quality control, financial stability, reputation, and reliability. Ella Cafe may also conduct inspections, product testing, and performance reviews of the supplier. It is important to note that Ella Cafe's specific criteria for approving suppliers are not disclosed to franchisees.
Ella Cafe will provide the franchisee with a written notification of either the approval or disapproval of the proposed supplier within 30 days of receiving the request. Ella Cafe retains the right to grant new approvals or revoke existing approvals of suppliers, and they will notify franchisees of these changes either in writing or by updating their operations manual. There is no fee for Ella Cafe to review or approve an alternate supplier.
However, if Ella Cafe has not identified approved suppliers for certain items or services, franchisees are free to purchase those items from any supplier, provided that the items and services meet Ella Cafe's specifications. These specifications may include brand requirements, and if such requirements exist, franchisees must purchase and use only approved brands.