What agreement is entered into between Big Apple Bagels and the franchisee in the event of relocation?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
We will approve relocation of your Store if your lease terminates without your fault or expires without any possibility of renewal on commercially reasonable terms as determined by BAB. We will also approve relocation if in our judgment there is a change in the character of your Store location sufficiently detrimental to its business to warrant relocation. You must obtain our prior written approval before opening your new Store. You may not open your new or relocated Store unless our representative is on-site at the opening, unless you request a waiver in writing, and we approve it in writing. Even if we waive the requirement of on-site presence, you must obtain our written authorization of the specific date that the Store may open. In the event of relocation, we and you will enter into an agreement which will set forth the new location for your Store and a deadline by which you must open for business at the new location, after which time you will be obligated to resume paying the royalty fee and Marketing Fund Contributions whether or not the new location has opened for business. Until such time that the new location is open for business, the amount of the royalty fee and Marketing Fund Contribution will be based on your average weekly level of Gross Revenues during the one year period prior to closing the first Store. We have the right to charge you for services we render to you in connection with your relocation, including reimbursement of our costs for reviewing and approving the new location and the construction drawings for the Store at its new location.
Source: Item 12 — TERRITORY (FDD pages 54–56)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, in the event that a franchisee needs to relocate their store, Big Apple Bagels and the franchisee will enter into a new agreement. This agreement will specify the new location of the store and set a deadline for when the store must be open for business. After this deadline, the franchisee is obligated to resume paying royalty fees and marketing fund contributions, regardless of whether the new location is open.
Until the new location opens, the royalty fee and marketing fund contribution amounts will be based on the franchisee's average weekly gross revenues during the one-year period before the original store closed. Big Apple Bagels also has the right to charge the franchisee for services rendered in connection with the relocation. This includes reimbursement for costs associated with reviewing and approving the new location and the construction drawings for the store at its new location.
This relocation policy provides a framework for franchisees who may need to move their Big Apple Bagels store due to lease termination or detrimental changes in the character of the store's location. However, it's important to note that relocation is subject to Big Apple Bagels's approval, and the franchisee will bear the costs associated with the move and any services provided by Big Apple Bagels during the process. The agreement ensures that Big Apple Bagels maintains consistent revenue streams during the relocation process while providing the franchisee with a path to continue operating their business in a new location.