Can Beverly Anns Cookie establish minimum and maximum prices for franchisees?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
n in any advertisement or website indicating "franchises available" or similar phrasing. We may, upon 30 days' prior written notice to you, reduce or suspend Brand Fund Contribution and operations for one or more periods of any length and terminate and/or reinstate the Brand Fund. We will spend all amounts before any termination of the Brand Fund.
12. FRANCHISEE MARKETING AND ADVERTISING
Standards
All advertisements and promotions you create or use must be completely factual, conform to the highest standards of ethical advertising, comply with all federal, state and local laws, rules and regulations, and comply with our standards in the Brand Manual. You must ensure that your advertisements and promotional materials do not infringe upon the intellectual property or legal rights of others. You may not advertise in any media whose primary circulation is outside of the Territory without our permission unless the advertisement is part of a cooperative advertising program.
Promotional Programs
We may periodically create advertising and sales promotion programs and materials to enhance the collective success of all Beverly Ann's Cookie Truck franchisees operating under the System. You must conduct and participate in promotional campaigns (the "Promotions") which may from time to time be required, and you must conduct and participate in those Promotions in accordance with our policies and procedures. This may include requiring you to offer free products to customers on certain days or providing coupons (not to exceed $500 per year unless authorized by the Council, if established). The value of Promotions you must offer may be increased at any time upon super-majority (75%) of the Council, if established, and upon 30 days' notice to you, but will not exceed $1,500 per calendar year.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Beverly Anns Cookie does not explicitly state that they will set minimum and maximum prices for franchisees. However, Beverly Anns Cookie may create advertising and sales promotion programs, and franchisees must participate in these promotions according to the franchisor's policies. This participation could include offering free products or coupons, with the value of required promotions potentially increasing to a maximum of $1,500 per calendar year if approved by a super-majority (75%) of the Council, if established.
Franchisees are required to issue rebates, giveaways, and other promotions in accordance with Beverly Anns Cookie's advertising programs. Franchisees must also honor promotions issued by other Beverly Ann's Cookie franchisees, provided it doesn't violate any laws or regulations. Franchisees cannot create their own gift cards or certificates, and can only sell those issued or sponsored by Beverly Anns Cookie. Additionally, franchisees cannot issue coupons or discounts unless approved by Beverly Anns Cookie.
While Beverly Anns Cookie does not directly control pricing, they do exert influence through promotional requirements and approval over discounts and coupons. A prospective franchisee should inquire about the extent of Beverly Ann's Cookie's control over pricing decisions and the flexibility franchisees have in setting prices to remain competitive in their local market. Understanding the specifics of these promotional programs and discount policies is crucial for assessing potential profitability and operational control.