What items are Ella Cafe franchisees required to purchase only from the Franchisor or Designated Suppliers?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee will purchase only from Franchisor, suppliers, or distributors designated by Franchisor ("Designated Suppliers"): (a) fixtures, furniture, equipment, interior and exterior signage, decor, trade dress (as Franchisor defines trade dress), and Coffee House design consulting services; (b) food products and ingredients, whether or not they are developed by or for Franchisor pursuant to a special recipe, formula, or specifications; (c) all fountain and bottled beverages; (d) uniforms, shirts, memorabilia, and all merchandise and items intended for retail sale (whether or
not bearing our Marks); (e) advertising, point-of-purchase materials, and other printed promotional materials; (f) gift certificates, stored value cards, and other non-cash payment systems; (g) stationery, business cards, contracts, and forms; (h) bags, packaging, and supplies bearing Franchisor's Marks; and (i) all other goods and/or services as Franchisor requires. Franchisor may receive money or other benefits from Designated Suppliers based on Franchisee's purchases. Franchisee agrees that Franchisor has the right to retain and use all such benefits as it deems appropriate, in its sole discretion. Franchisor herby retains the right to add, delete, or modify any items which must be purchased from the Designated Supplier by updating the operations manual. Furthermore, franchisor retains the right to be the Designated Supplier for certain initial inventories including but not limited to coffee beans and ground coffee, supplies, branded paper products, and similar merchandises. Franchisor retains the right to be the sole supplier for any branded products used in operation of your Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, franchisees are required to purchase specific items from the franchisor or designated suppliers. These include fixtures, furniture, equipment, interior and exterior signage, decor, trade dress, and Coffee House design consulting services. This ensures uniformity and quality control across all Ella Cafe locations.
Additionally, franchisees must purchase all food products and ingredients, whether or not they are developed by or for Ella Cafe under a special recipe or formula, from designated suppliers. All fountain and bottled beverages, uniforms, shirts, memorabilia, and all merchandise and items intended for retail sale (whether or not bearing Ella Cafe's Marks) must also be sourced from these suppliers. This requirement extends to advertising, point-of-purchase materials, and other printed promotional materials, ensuring consistent marketing efforts.
Furthermore, Ella Cafe franchisees are obligated to obtain gift certificates, stored value cards, and other non-cash payment systems, stationery, business cards, contracts, and forms, as well as bags, packaging, and supplies bearing Ella Cafe's Marks from the franchisor or designated suppliers. The franchisor retains the right to add, delete, or modify any items which must be purchased from the Designated Supplier by updating the operations manual. Also, Ella Cafe retains the right to be the Designated Supplier for certain initial inventories including but not limited to coffee beans and ground coffee, supplies, branded paper products, and similar merchandises. Ella Cafe retains the right to be the sole supplier for any branded products used in operation of your Franchised Business.
Ella Cafe may receive money or other benefits from Designated Suppliers based on Franchisee's purchases. Franchisee agrees that Ella Cafe has the right to retain and use all such benefits as it deems appropriate, in its sole discretion. While franchisees may purchase items and services from any supplier for which Ella Cafe has not identified Designated Suppliers, these items and services must meet Ella Cafe's specifications, including brand requirements. If a franchisee desires to purchase an input from another vendor other than an Approved Vendor or Required Vendor, they must submit a written request for approval and any information, specifications and/or samples requested by Ella Cafe.