What options does a Big Apple Bagels franchisee have for branding the bagels sold through the wholesale program?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. The grant of the right of Franchisee to distribute unbranded (or "Jacobs Bros.®" branded) bagel productsthrough non-retail channels of distribution ("Wholesale") is strictly at the discretion of Franchisor, and shall be by execution of the Wholesale Program Addendum to this Franchise Agreement. Jacobs Bros. is a brand acquired by an affiliate of Franchisor in 1999, and the use of that brand name by Franchisee for wholesale products is authorized.
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- Franchisee is granted the right to sell at wholesale unbranded bagels and muffins or "Jacobs Bros." branded bagels ("Wholesale Products") produced in the BAGELS Production Store on a nonexclusive basis outside of the BAGELS Production Store under the conditions as set forth herein. The right of Franchisee to participate in this Wholesale Program is expressly conditioned upon Franchisee being in good standing.
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- Franchisee must obtain Franchisor's prior written approval for each wholesale customer to whom Franchisee wishes to sell Wholesale Products. Franchisee must submit to Franchisor the name of each proposed wholesale customer, including the customer's address and purchase requirements. Franchisee may not sell Wholesale Products to any customer until Franchisor gives its approval in writing. Franchisor's trademarks are not to be used in association with the Wholesale Products at any time.
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- Franchisee is expressly prohibited from selling cream cheese, coffee, or coffee products on a wholesale basis.
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- The sale of Wholesale Products is only authorized for BAGELS Production Stores.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, a franchisee has limited options for branding bagels sold through the wholesale program. Specifically, a franchisee is granted the right to sell unbranded bagels and muffins or "Jacobs Bros." branded bagels. The option to distribute these products through non-retail channels is at the discretion of Big Apple Bagels and requires a Wholesale Program Addendum to the Franchise Agreement. Jacobs Bros. is a brand acquired by an affiliate of the franchisor in 1999, and the use of that brand name by the franchisee for wholesale products is authorized.
Big Apple Bagels retains significant control over the branding and customer selection in the wholesale program. Franchisees must obtain prior written approval from Big Apple Bagels for each wholesale customer, submitting the customer's name, address, and purchase requirements. This approval process ensures that the customers align with the brand's image and standards. Furthermore, Big Apple Bagels trademarks are not to be used in association with the wholesale products at any time, emphasizing the distinction between retail and wholesale branding.
It's important to note that Big Apple Bagels may advise franchisees that certain customers or categories of customers are not authorized under the Wholesale Program, and franchisees must comply with these restrictions. Additionally, the right to distribute wholesale products is not automatically assignable if the franchisee's BAGELS Production Store is sold or assigned, and Big Apple Bagels may terminate the franchisee's participation in the Wholesale Program upon assignment. This highlights the franchisor's control over the wholesale distribution channel and the importance of adhering to their guidelines and standards.
Prospective franchisees should be aware that the wholesale program is not a guaranteed right and is subject to the franchisor's discretion. The program is available only to BAGELS Production Stores, and franchisees are expressly prohibited from selling cream cheese, coffee, or coffee products on a wholesale basis. The FDD emphasizes that the Wholesale Program must be operated in strict conformance with the Franchise Agreement and the Operations Manual, and any breach of the Addendum is considered a breach of the Franchise Agreement.