factual

Is there a fee for Ella Cafe to review or approve an alternate supplier?

Ella_Cafe Franchise · 2024 FDD

Answer 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, there is no fee for Ella Cafe to review or approve an alternate supplier. However, if a franchisee proposes to purchase items from an unapproved source for use in their Coffee House, they must request approval in writing from Ella Cafe.

Ella Cafe will evaluate the supplier based on criteria such as capacity, quality, financial stability, reputation, and reliability, and may also conduct inspections, product testing, and performance reviews. These criteria for approving suppliers are not made available to the franchisee. Ella Cafe will provide written notification of approval or disapproval within 30 days of receiving the request.

Ella Cafe may grant or revoke supplier approvals by written notice or by updating their Manual. Franchisees can purchase items and services from any supplier if Ella Cafe has not identified approved suppliers for those items, provided the items and services meet Ella Cafe's specifications, including any brand requirements.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.