factual

Can Beverly Anns Cookie require a franchisee to resell items that are not uniquely identified with the brand?

Beverly_Anns_Cookie Franchise · 2025 FDD

Answer 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 an agreement, they may arrange for the franchisee to purchase the 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 implies that Beverly Anns Cookie has the right to resell items to franchisees, and these items are not necessarily uniquely identified with the Beverly Anns Cookie brand.

This arrangement allows Beverly Anns Cookie to potentially profit from reselling goods to franchisees, as they can include a reasonable markup. While this could provide convenience for franchisees by sourcing products for them, it also means franchisees may be required to purchase goods through Beverly Anns Cookie, even if they could find similar products elsewhere, potentially impacting their costs and profit margins.

Disclaimer: This information is extracted from the 2025 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.