In the Big Apple Bagels addendum, what must the franchisee acknowledge before being bound by the terms of the addendum?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, before a franchisee is bound by the terms of any addendum to the franchise or area development agreement, the franchisee must acknowledge having read the addendum, understand its terms, and consent to be bound by them. This acknowledgement is formalized through signatures on the addendum by both the franchisor, BAB Systems, Inc., and the franchisee (or developer). The addendum becomes effective on the date specified in the document after these acknowledgements are made.

This requirement ensures that franchisees are fully aware of any changes or modifications to their original franchise agreement. Addenda are used to amend various aspects of the agreement, such as those related to termination conditions, transfer rights, governing law, or area development terms. By requiring franchisees to read, understand, and consent to the addendum, Big Apple Bagels aims to prevent future disputes arising from misunderstandings or lack of awareness of the updated terms.

For a prospective Big Apple Bagels franchisee, this means carefully reviewing any addenda presented by the franchisor and seeking clarification on any points that are unclear. It is crucial to fully comprehend the implications of the changes before signing, as the franchisee will be legally bound by the addendum's terms upon execution. This process is standard practice in franchising, ensuring both parties are in agreement and aware of their obligations.