How are point-of-purchase materials supplied to Brueggers Bagels licensees priced?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (r) From time to time, Licensee shall purchase point-of-purchase materials that relate to promotions initiated or approved by Licensor from Licensor or a vendor approved by Licensor.
In the event Licensor supplies such materials, it shall supply them to Licensee at Licensor's actual, out-of-pocket cost to manufacture or purchase them, plus a markup to cover Licensor's costs or order processing, handling, and shipping.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, franchisees are required to purchase point-of-purchase materials for promotions that are either initiated or approved by Brueggers Bagels. These materials can be sourced either directly from Brueggers Bagels or from a vendor that Brueggers Bagels has approved.
If Brueggers Bagels supplies these point-of-purchase materials directly to the franchisee, the pricing structure is determined by Brueggers Bagels' actual, out-of-pocket costs. This includes the expenses incurred to either manufacture the materials or purchase them from a third-party supplier.
In addition to the direct manufacturing or purchase costs, Brueggers Bagels also adds a markup to the price. This markup is specifically intended to cover Brueggers Bagels' expenses related to processing the order, handling the materials, and shipping them to the franchisee. This pricing structure ensures that the franchisee covers the direct costs and a portion of Brueggers Bagels' administrative costs associated with providing these materials.