What is the definition of a 'Third Party Delivery Service' in the Big Apple Bagels Franchise Agreement?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, a "Third Party Delivery Service" is defined as a company or business through which customers purchase menu items from a franchisee's store, and that delivers those menu items to the customer at a location other than the franchisee's store. These services typically charge the franchisee a fee, which may be automatically deducted from the funds collected from the customer before the service disburses the funds to the franchisee.

This definition is important for prospective Big Apple Bagels franchisees because it clarifies the relationship between the franchisee, the delivery service, and the customer. It also highlights the fact that franchisees will likely incur fees when using these services, which will impact their revenue. The FDD specifically mentions GrubHub, DoorDash, UberEats, and ezCater as examples of Third Party Delivery Services.

Franchisees should be aware that Big Apple Bagels retains the right to determine whether fees paid to Third Party Delivery Services are included or excluded from Gross Revenues for royalty calculation purposes. This determination will be published in Big Apple Bagels' Operations Manual or in a Policy Statement issued by Big Apple Bagels. Franchisees must also inform Big Apple Bagels in writing within seven days of first selling menu items through a Third Party Delivery Service, including the name of the company and access information to the delivery service's website, so that Big Apple Bagels can verify the franchisee's Gross Revenues from all sources.