What rights does Brueggers Bagels reserve regarding Sales Discounts?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
When calculating Gross Sales, you may deduct that portion of the normal full menu price of any item that you do not collect as a result of BFC approved promotions (whether local or system-wide, including coupons) and manager discounts (collectively, "Sales Discounts"), as well as discounted employee meals. Sales Discounts and discounted employee meals must be fully disclosed on all reports you submit to BFC, and BFC reserves the right, in its sole discretion, to disallow any Sales Discounts not meeting the requirements we set forth. We reserve the right to modify our policies consistent with restaurant industry practices regarding revenue recognition, revenue reporting, and the inclusion in or exclusion of certain revenue from "Gross Sales" as circumstances, business practices, and technology change.
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, Brueggers Bagels retains specific rights regarding sales discounts offered by franchisees. Sales Discounts are defined as the portion of the normal full menu price of any item that the franchisee does not collect as a result of Brueggers Bagels-approved promotions, whether local or system-wide, including coupons, and manager discounts, as well as discounted employee meals.
Brueggers Bagels requires that all Sales Discounts and discounted employee meals be fully disclosed on all reports submitted by the franchisee. Brueggers Bagels reserves the right, in its sole discretion, to disallow any Sales Discounts that do not meet the requirements they set forth. This means that while franchisees can offer discounts to customers, Brueggers Bagels has the authority to reject any discount that doesn't align with their established guidelines.
Furthermore, Brueggers Bagels reserves the right to modify its policies regarding revenue recognition, revenue reporting, and the inclusion or exclusion of certain revenue from "Gross Sales." These modifications will be consistent with restaurant industry practices and can change as circumstances, business practices, and technology evolve. This clause provides Brueggers Bagels with the flexibility to adapt its policies to changing market conditions and industry standards, which may impact how a franchisee calculates and reports their Gross Sales and associated fees.