Is a Big Apple Bagels franchisee under a contractual obligation to upgrade their computer system?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon BAB's request, you must purchase our designated equipment and/or software that will process BAB authorized gift cards and/or the BAB loyalty program ("Gift Card/Loyalty Program), as well as credit card transactions and mobile pay. Currently there is no processing equipment or software for gift cards or mobile pay, but we reserve the right in the future to require you to obtain it as it becomes available. You must offer for sale BAB Gift Cards and the Loyalty Program, which must be in the form and version we designate and approve.
We use email and fax for many of our communications with our franchisees. You must have Internet and email access with high-speed Internet service (DSL or cable). You must also maintain a fax machine in good operating condition, which must be set on "Automatic Receive," with a dedicated phone line. Unless you have another method to access Internet and e-mail, you must purchase computer hardware and software, as well as the services of an Internet provider to enable you to access BAB's intranet and use vendor on-line ordering systems. BAB may require you to lease proprietary software from BAB or a third party designated by BAB, and to enter into a software License Agreement with BAB or such third party. BAB reserves the right to access information and data pertaining to your Store produced by and/or stored on your computer system. There are no contractual limits on BAB's right to access the information. As technology advances, you must comply with our requirements, as described in the BAGELS Operations Manual or via Policy Statement, in order for us to be able to communicate with you. The information and data we may access includes that of any Third Party Delivery Service companies through which customers purchase menu items from your Store. You must, upon our request, furnish us with access information to the websites of any Third Party Delivery Service being used in order to enable us to verify your Gross Revenues from all sources.
For each Store you own, you must purchase a POS (Point-of-Sale) System, credit card processor, computer, monitor, printer and Internet service provider that meet BAB's standards and specifications. You must record all sales on the POS System as designated by BAB. The cost to purchase a combination fax machine/printer ranges from $150 to $450. The POS System and software are not proprietary to BAB. The principal function of this equipment is to record sales and individual product sales, as well as sales by hour and half-hour. It is also used for computing sales tax, to provide individual and group product information and as an employee time clock. The current cost to purchase the POS System with one POS register is approximately $2,200. The cost to purchase the POS system with two POS registers is approximately $4,400. Both prices include the Emerge POS and thermal printer, cash drawer, software, shipping and installation. In addition there is a monthly fee of $95 (for one POS system) or $116 (for two POS system) for the software license and software maintenance. The hardware and software manufacturers have no obligation to provide ongoing maintenance, repairs, upgrades or
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 42–53)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, franchisees are obligated to comply with the franchisor's technology requirements as technology advances. This includes purchasing designated equipment or software for processing gift cards, loyalty programs, credit card transactions, and mobile payments upon Big Apple Bagels' request. While there is currently no processing equipment or software required for gift cards or mobile pay, Big Apple Bagels reserves the right to mandate it in the future as it becomes available.
Big Apple Bagels requires franchisees to maintain internet and email access with high-speed internet service, as well as a fax machine in good working order with a dedicated phone line. Franchisees may also be required to lease proprietary software from Big Apple Bagels or a designated third party. Big Apple Bagels also reserves the right to access information and data pertaining to the franchisee's store produced or stored on the computer system, without contractual limits to this access.
To ensure communication and compatibility with Big Apple Bagels' systems, franchisees must comply with technology requirements outlined in the Big Apple Bagels Operations Manual or via Policy Statement. This includes providing access to information from Third Party Delivery Service websites to verify gross revenues. Franchisees must also purchase a POS system, credit card processor, computer, monitor, printer, and internet service provider that meet Big Apple Bagels' standards and specifications. The current cost to purchase the POS System with one POS register is approximately $2,200, or approximately $4,400 for two registers, including software, shipping, and installation, plus a monthly fee of $95 or $116 respectively for the software license and maintenance.