Is a Big Apple Bagels franchisee permitted to create their own gift card or loyalty program?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
l. Gift Cards/Loyalty Program. Franchisee agrees:
- i to offer for sale gift cards and/or the loyalty program, which must be in the form and version designated by Franchisor ("Official Gift Card/Loyalty Program"), as it may be amended from time to time;
- ii. not to offer for sale or give away any form of Gift Card or Loyalty Program other than the Official Gift Card/Loyalty Program;
- iii. not to create Franchisee's own Gift Card or Loyalty Program;
- iv. to accept and honor the Official Gift Card/Loyalty Program in exchange for product when presented for redemption at Franchisee's Store;
- v. to obtain and maintain whatever is the currently designated equipment and/or software necessary to process the authorized Gift Cards/Loyalty Program, which may be through a Mobile Application; and
- vi. to comply with any policy promulgated by Franchisor regarding changes to the form and use of Gift Card/Loyalty Program, including transition periods for the phasing in of modifications to the Official Gift Card/Loyalty Program.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from creating their own gift card or loyalty program. Franchisees must offer the official gift card and/or loyalty program designated by Big Apple Bagels, and they must use the form and version that Big Apple Bagels specifies, including any amendments made from time to time.
This means a prospective Big Apple Bagels franchisee must use the franchisor's established program and cannot implement a separate, independent program. The franchisee is required to accept and honor the official gift cards and loyalty program at their store when presented for redemption. They also need to obtain and maintain the necessary equipment and/or software to process these official programs, potentially through a mobile application.
Furthermore, franchisees must comply with any policies Big Apple Bagels issues regarding changes to the gift card and loyalty program, including any transition periods for phasing in modifications. This ensures uniformity across all Big Apple Bagels locations and allows the franchisor to maintain control over the brand's marketing and customer engagement strategies. This is a fairly standard practice in franchising, as it helps maintain brand consistency and allows for centralized marketing efforts.