In Michigan, can Beverly Anns Cookie require a franchisee to resell items that are not uniquely identified with them?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, but are not required to, negotiate agreements with suppliers to obtain products or services for our franchisees. If we negotiate an agreement, we may arrange for you to purchase the products directly from the supplier. We may receive rebates from these suppliers based on your purchases. We may also purchase certain items from suppliers in bulk and resell them to you at our cost (including overhead and salaries), plus shipping fees and a reasonable markup, in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Anns Cookie may negotiate agreements with suppliers to obtain products or services for franchisees. If Beverly Anns Cookie negotiates such an agreement, they may arrange for the franchisee to purchase products directly from the supplier.
Beverly Anns Cookie may also purchase certain items from suppliers in bulk and resell them to the franchisee at their cost, including overhead and salaries, plus shipping fees and a reasonable markup, in their sole discretion. This means that Beverly Anns Cookie has the right to resell items to franchisees, and these items are not necessarily uniquely identified with Beverly Anns Cookie.
For a prospective franchisee, this indicates that they may be required to purchase some supplies or inventory from Beverly Anns Cookie, which Beverly Anns Cookie purchases from other suppliers. The items may not carry Beverly Anns Cookie's branding. This could impact the franchisee's costs and potentially their ability to source items from alternative suppliers.