Does Beverly Anns Cookie reserve the right to establish minimum resale prices?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not required to advertise on a local basis as an individual Beverly Ann's Business, and you are not required to spend a minimum of your gross revenues on local marketing and promotion in your Protected Territory. You are not required to participate in a local or regional advertising cooperative. We may conduct market research and testing to determine consumer trends and the marketability of new food products and services. You agree, at your sole cost and expense, to issue and offer such rebates, giveaways, and other promotions in accordance with advertising programs established by us, and further agree to honor the rebates, giveaways, and other promotions issued by other Beverly Ann's Cookie franchisees under any such program, so long as such compliance does not contravene any applicable law, rule, or regulation. You will not create or issue any gift cards/certificates and will only sell gift cards/certificates that have been issued or sponsored by us and which are accepted at all Beverly Ann's Businesses, and you will not issue coupons or discounts of any type except as approved by us. We may conduct market research and testing to determine consumer trends and the marketability of new food products and services.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 49)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Beverly Anns Cookie does not explicitly state whether the franchisor reserves the right to establish minimum resale prices. However, Item 11 discusses local advertising and promotions, stating that franchisees must issue and offer rebates, giveaways, and other promotions in accordance with advertising programs established by the franchisor. Additionally, franchisees cannot issue coupons or discounts of any type except as approved by Beverly Anns Cookie. This suggests that while Beverly Anns Cookie doesn't directly set prices, they do exert control over promotional pricing and discounts.
Item 7 outlines that Beverly Anns Cookie franchisees must prepare and sell only the products that the franchisor designates and approves. The franchisor has the right to periodically make modifications to these products, and franchisees agree to comply with these modifications. Franchisees may not offer or sell any other product or service without the prior written consent of Beverly Anns Cookie.
Prospective franchisees should seek clarification from Beverly Anns Cookie regarding their policies on pricing and the extent to which franchisees have autonomy in setting prices for their products. Understanding the franchisor's control over pricing and promotions is crucial for assessing the potential profitability and operational flexibility of a Beverly Anns Cookie franchise.