What brand of coffee must Big Apple Bagels franchisees purchase?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase all your coffee, which is branded in your store as Brewster's, from our designated supplier. The term "supplier" in this disclosure document, when used in connection with our right to designate or approve suppliers from whom Franchisee must purchase products or services, includes not only the manufacturer, but also the distributor of those products or services. BAB, Inc. will derive revenue in the form of a license fee on your purchases of coffee from the designated source under a trademark licensing agreement between BAB, Inc., an affiliate of BAB, and the designated source. The license fee is a certain amount for each pound of coffee purchased by you from the designated source.
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, franchisees must purchase coffee that is branded as Brewster's in their store from Big Apple Bagels's designated supplier. Big Apple Bagels will receive revenue in the form of a license fee on franchisee coffee purchases from the designated source under a trademark licensing agreement between BAB, Inc., an affiliate of BAB, and the designated source. The license fee is a certain amount for each pound of coffee purchased by the franchisee from the designated source.
This requirement ensures brand consistency across all Big Apple Bagels locations, as all stores will serve Brewster's branded coffee. It also creates a revenue stream for Big Apple Bagels through license fees on coffee purchases.
Prospective franchisees should inquire about the specific amount of the license fee per pound of coffee, the designated supplier's identity, and the terms of the trademark licensing agreement to fully understand the costs and obligations associated with this requirement.