What are the consequences if a Big Apple Bagels franchisee purchases supplies from an unapproved supplier?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisee shall purchase a reasonable quantity of tested products and effectively promote and make a reasonable effort to sell such products.
b. Standards and Sources of Supplies and Compliance with Preparation Methods, Recipes, and Menu.
i. Franchisee is required to obtain all his coffee, muffin mix and cream cheese from Franchisor or Franchisor's designated supplier. Franchisee is also required to purchase from Franchisor's designated suppliers a mandatory initial inventory of private label items, including, but not limited to branded disposables, catering packaging and coffee mugs, which will be shipped and billed by Franchisor's designated suppliers. Franchisor also reserves the right to require that other items be purchased exclusively from Franchisor or its designees, in which event Franchisor or its designees may derive revenue from said purchases.
ii. Other than products which must be purchased from Franchisor, its Affiliates or its designated supplier pursuant to Paragraph 9.b.i. herein, Franchisee agrees that the BAGELS Store will
(1) use ingredients and prepare and offer for sale other beverages and food products
(2) use cups, utensils, uniforms, menus, forms, packaging materials, labels and other supplies, and
(3) offer for sale other products and services
which conform to Franchisor's specifications and quality standards and/or are purchased from suppliers approved from time to time by Franchisor (which may include Franchisor and/or its Affiliates).
- iii. Franchisee agrees to use in the operation of the BAGELS Store only signs, equipment, merchandise, materials and supplies that conform to Franchisor's minimum specifications and quality standards and/or are purchased from suppliers approved from time to time by Franchisor (which may include Franchisor and/or its Affiliates).
- iv. Franchisor may, from time to time, modify the minimum standards and specifications and/or the list of approved brands and/or suppliers. If Franchisee proposes to use or offer any food products or beverages, other products or services, ingredients or supplies (other than those which must be purchased pursuant to Paragraph 9.b.i.) which do not comply with Franchisor's then-current minimum standards or specifications or which are purchased from a supplier that has not been approved, Franchisee shall first notify Franchisor in writing and submit sufficient information, specifications and samples concerning such item or supplier for determination by Franchisor as to whether such item complies with Franchisor's specifications and standards, and/or whether the supplier meets Franchisor's approved supplier criteria. Franchisor shall have the right to charge Franchisee a reasonable fee to cover Franchisor's costs incurred in making such determination. Franchisor shall, within sixty (60) days, notify Franchisee whether or not such proposed item or supplier is approved. Franchisor may from time to time prescribe procedures for submission of requests for approval of items or suppliers and obligations which approved suppliers must assume (which may be incorporated into a written agreement to be executed by approved suppliers).
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, franchisees must adhere to specific standards and source their supplies accordingly. Franchisees are required to obtain coffee, muffin mix, and cream cheese from Big Apple Bagels or their designated suppliers. Additionally, a mandatory initial inventory of private label items, including branded disposables, catering packaging, and coffee mugs, must be purchased from designated suppliers. Big Apple Bagels retains the right to mandate that other items be purchased exclusively from them or their designees, from which they may derive revenue.
For other products and services, franchisees must use ingredients, beverages, food products, cups, utensils, uniforms, menus, forms, packaging materials, labels, and other supplies that conform to Big Apple Bagels' specifications and quality standards, or they must be purchased from approved suppliers. If a franchisee wishes to use items or suppliers that do not meet these standards or are not approved, they must first notify Big Apple Bagels in writing and submit sufficient information and samples for the franchisor to determine compliance. Big Apple Bagels has the right to charge a reasonable fee for this determination.
Big Apple Bagels will then notify the franchisee within 60 days whether the proposed item or supplier is approved. The franchisor may also prescribe procedures for submitting approval requests and obligations for approved suppliers, potentially including a written agreement. Big Apple Bagels may limit the number of suppliers or brands for any ingredient or food or beverage product used by the store and may collect a service fee on items purchased through national marketing contracts. While the FDD outlines the process for requesting approval of new suppliers, it does not explicitly state the consequences of using unapproved suppliers without prior authorization. A prospective franchisee should seek clarification from Big Apple Bagels regarding the specific penalties or repercussions for non-compliance with the approved supplier policy.