What is the amount of the deposit required to be paid to Big Apple Bagels?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
PROSPECTIVE FRANCHISEE has, contemporaneously with the execution of this Preliminary Agreement, deposited with BAB the sum of Ten Thousand ($10,000.00) Dollars ("Deposit") to be applied against the initial franchise fee payable by PROSPECTIVE FRANCHISEE if a BAGELS Franchise shall subsequently be granted.
PROSPECTIVE FRANCHISEE may withdraw his application for a Franchise and terminate this Preliminary Agreement by a written notice of termination delivered to BAB at any time prior to the submission by PROSPECTIVE FRANCHISEE of a proposed site and the approval by BAB of said site. Upon termination prior to the approval by BAB of a site, BAB shall refund PROSPECTIVE FRANCHISEE's Deposit less Three Thousand ($3,000.00) Dollars.
If PROSPECTIVE FRANCHISEE fails to submit any sites to BAB within the 60 day period specified in Paragraph 3 above, BAB may, at any time thereafter, terminate this Preliminary Agreement, in which event PROSPECTIVE FRANCHISEE shall not be entitled to any refund of the Deposit.
Any refund of deposit is conditioned on PROSPECTIVE FRANCHISEE returning to BAB any written criteria for site selection referred to in Paragraph 3 above. The amount withheld by BAB is to compensate the expenses incurred by BAB in connection with PROSPECTIVE FRANCHISEE's proposed purchase of a BAGELS Franchise, including, without limitation, those expenses related to research, demographics data, preliminary layouts, inspection of a site for PROSPECTIVE FRANCHISEE's BAGELS Store, travel and living expenses, compensation of employees of BAB and legal fees and expenses.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a prospective franchisee must deposit $10,000 with Big Apple Bagels when signing the Preliminary Agreement. This deposit will be applied towards the initial franchise fee if Big Apple Bagels grants the franchise.
However, this deposit is not entirely refundable under certain conditions. If the prospective franchisee withdraws their application before Big Apple Bagels approves a site, Big Apple Bagels will refund the deposit, but will deduct $3,000 to cover expenses related to processing the application, including research, demographic data, preliminary layouts, site inspection, travel, employee compensation, and legal fees.
Furthermore, if the prospective franchisee fails to submit any sites to Big Apple Bagels within 60 days, they will not be entitled to any refund of the deposit if Big Apple Bagels terminates the Preliminary Agreement. The prospective franchisee must also return any written criteria for site selection to receive a deposit refund.