What agreements and documents are required for the renewal of a Big Apple Bagels franchise?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
newal fee of Two Thousand Five Hundred Dollars ($2,500.00);
(h) Franchisee complies with Franchisor's then-current qualification and training requirements; and
(i) Franchisee executes a general release, in a form prescribed by Franchisor, of any claims against Franchisor and its officers, directors, agents and employees.
ii. Renewal of this Agreement shall be effectuated by the execution by Franchisor and Franchisee of the then current form of standard Franchise Agreement and all other agreements and legal instruments and documents then customarily used by Franchisor in the granting of Franchises for BAGELS Stores, which may contain substantially different provisions from this Agreement, including higher or lower royalty fees and Marketing Fund contributions, and new fees not contained in this Agreement.
iii. In the event Franchisee fails to give Franchisor notice as provided in Paragraph 2.b.i(a) of his intent to renew the franchise, Franchisor need not renew the Franchise Agreement. Further, in said event Franchisor has the right to commence measures to seek another franchisee for the Store, including but not limited to advertising or contracting with a business broker.
iv. In the event Franchisee does not intend to renew, Franchisee has a mandatory obligation to give Franchisor written notice of Franchisee's intent not to renew the franchise at least six (6) months prior to the expiration date of this Agreement. If Franchisee fails to give Franchisor at least six (6) months' notice of its intent not to renew, notwithstanding anything to the contrary contained in this Agreement, Franchisor has the right to impose an automatic renewal of this Agreement, effective on this Agreement's scheduled expiration date ("Renewal Date"), for a renewal term of ten (10) years. In all events, upon renewal, Franchisee shall be obligated to pay Franchisor, as of the Renewal Date, the Renewal Fee set forth in Paragraph 2.b.i.(g).
v. Franchisor may in its sole discretion extend this Agreement's term for the time period necessary to either give Franchisee reasonable time to correct deficiencies or to give Franchisor adequate time to give notice to Franchisee of Franchisor's refusal to grant a successor franchise as required under this Agreement or under applicable law.
vi.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, to renew a franchise, a franchisee must execute the then-current form of the standard Franchise Agreement, along with all other agreements, legal instruments, and documents that Big Apple Bagels customarily uses when granting franchises. These documents may contain significantly different provisions from the original agreement, potentially including altered royalty fees, marketing fund contributions, and new fees.
In addition to executing the required documents, a franchisee must provide a general release, in a form prescribed by Big Apple Bagels, of any claims against the franchisor and its officers, directors, agents, and employees. The franchisee must also meet several conditions to be eligible for renewal, including giving written notice of intent to renew between six and twelve months before the current term ends, not being in material breach of any obligations, substantially complying with all terms and conditions of the agreement, meeting operating and quality standards, satisfying all monetary obligations, having an approved store location and lease, agreeing to upgrade the store to current standards, complying with current qualification and training requirements, and paying a renewal fee of $2,500.00.
It is important to note that failure to provide notice of intent to renew may result in Big Apple Bagels seeking another franchisee for the store. Conversely, failure to provide notice of intent not to renew at least six months before the expiration date may lead to an automatic renewal of the agreement for a ten-year term. This highlights the importance of adhering to the notification timelines specified in the franchise agreement to avoid unintended consequences.