Is Ella Cafe required to communicate information about approved and designated suppliers through the Manual?

According to Ella Cafe's 2024 Franchise Disclosure Document, information regarding approved and designated suppliers will be communicated to franchisees via the Manual. This means that franchisees must purchase certain items from Ella Cafe or sources that Ella Cafe designates. These items include fixtures, furniture, equipment, interior and exterior signage, graphics, decor, trade dress, and Coffee House design consulting services.

Ella Cafe also requires franchisees to purchase food products, spices, ingredients, fountain and bottled beverages, advertising materials, gift certificates, stationery, and branded packaging from Ella Cafe or designated suppliers. The FDD specifies that Ella Cafe is currently the only designated supplier for the Initial Inventory Package, which includes proprietary coffee, supplies, branded paper products, and merchandise needed to open the Coffee House.

If a franchisee wants to purchase items from an unapproved source, they must request written approval from Ella Cafe. Ella Cafe will then evaluate the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability. Ella Cafe will provide written notification of approval or disapproval within 30 days of the request. Ella Cafe may also grant or revoke supplier approvals by updating the Manual or providing written notice.

Franchisees can purchase items and services for which Ella Cafe has not identified approved suppliers from any supplier, as long as the items and services meet Ella Cafe's specifications, including any brand requirements. If brand requirements are identified, only approved brands can be used.