What agreement does BAB, Inc. have with Coca-Cola that affects Big Apple Bagels franchisees?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
it toward future obligations of BAB to that supplier.
You must purchase fountain beverage products from an authorized distributor of Coca-Cola. BAB, Inc. entered into a beverage marketing agreement (the "Beverage Marketing Agreement") with Coca-Cola on December 9, 2015. You will have the right to purchase fountain beverage products at Coca-Cola's then-current published chain account prices, which prices are subject to change from time to time. In its fiscal year ended November 30, 2024
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 35–38)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, BAB, Inc. has a Beverage Marketing Agreement with Coca-Cola, established on December 9, 2015. As a result of this agreement, Big Apple Bagels franchisees are required to purchase fountain beverage products from an authorized Coca-Cola distributor. Franchisees benefit from the right to purchase these products at Coca-Cola's chain account prices, though these prices are subject to change.
This arrangement ensures that Big Apple Bagels locations consistently offer Coca-Cola products, maintaining brand uniformity across all franchise locations. For BAB, Inc., the agreement generated revenue of $21,722 in the fiscal year ending November 30, 2024.
For a prospective franchisee, this means they must factor in the cost of Coca-Cola products when projecting expenses. While the agreement provides access to chain account pricing, franchisees should regularly monitor these prices for any changes that could impact their profitability. It is also important to note that franchisees do not have the freedom to choose a different beverage supplier, as they are obligated to purchase exclusively from Coca-Cola's authorized distributors.