What is the exception to the 'register tapes' requirement for Big Apple Bagels stores?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
The reference to "register tapes" or "tapes" in any provisions of this Franchise Agreement applies only to BAGELS Stores that were not required to update to the current POS System, which generates reports by means other than a register tape.
Franchisee agrees that his POS System will be polled by Franchisor to verify Gross Revenues.
Franchisor may access Franchisee's POS System by electronic means, including remote access, modem, the cloud, or any other Internet-based technology available to Franchisor, without Franchisee's knowledge or consent.
Franchisor reserves the right to download sales, other data and communications from Franchisee's POS System.
Franchisor shall also have the right to obtain other sales data, in order to gather sales trend data, product mix information, or any other purpose Franchisor in its sole discretion deems appropriate.
Franchisee must afford Franchisor unimpeded access to Franchisee's POS System as Franchisor may request, in the manner, form, and at the times requested by Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the requirement to submit register tapes does not apply to stores that have updated to the current Point of Sale (POS) system. These updated systems generate reports through methods other than traditional register tapes. This exception is relevant because Big Apple Bagels uses the POS system data to verify a franchisee's gross revenues.
Big Apple Bagels has the right to poll the franchisee's POS system to confirm reported gross revenues. The franchisor can access the POS system electronically, which includes remote access, modems, cloud services, or any other Internet-based technology, without needing the franchisee's prior knowledge or consent. This access allows Big Apple Bagels to download sales data and other communications from the POS system.
Furthermore, Big Apple Bagels retains the right to obtain additional sales data to analyze sales trends and product mix, or for any other purpose they deem appropriate. Franchisees must provide unimpeded access to their POS system as requested by Big Apple Bagels, including the manner, form, and timing of access. This ensures that Big Apple Bagels can effectively monitor sales and gather necessary data for business analysis and compliance.