Can the Big Apple Bagels franchisor modify the minimum standards and specifications for supplies?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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). Franchisor may impose limits on the number of suppliers and/or brands for any ingredient or food or beverage product used or served by the BAGELS Store. Franchisor may collect a service fee on items purchased by Franchisee through national marketing contracts negotiated and maintained by Franchisor. Such service fee shall be established and paid to the Marketing Fund in the manner prescribed from time to time 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 franchisor has the authority to modify the minimum standards and specifications for supplies used in the operation of a Big Apple Bagels store. This includes the ability to change the list of approved brands and suppliers.
If a franchisee wants to use products, beverages, or supplies that don't meet the current minimum standards or are purchased from a non-approved supplier (excluding items required to be purchased directly from Big Apple Bagels or its designated suppliers), the franchisee must first get written approval from Big Apple Bagels. This process involves submitting sufficient information, specifications, and samples for the franchisor to determine compliance with their standards and supplier criteria. Big Apple Bagels has the right to charge a reasonable fee to cover the costs of 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 establish procedures for submitting approval requests and obligations for approved suppliers, potentially including a written agreement. Furthermore, Big Apple Bagels can limit the number of suppliers or brands for any ingredient or food/beverage product. The franchisor may also collect a service fee on items purchased through national marketing contracts, which is paid to the Marketing Fund.