What is the 'Area' defined as in the context of site selection for a Big Apple Bagels store?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
or "My Favorite Muffin Your All Day Bakery Cafe," one of which is their primary identifying brand.
THEREFORE, the parties agree as follows:
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- 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.
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- Upon execution of this Agreement, BAB will furnish PROSPECTIVE FRANCHISEE its written criteria for site selection, which must be returned to BAB upon termination of this Agreement.
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- It shall be the obligation of PROSPECTIVE FRANCHISEE to search for, locate, and submit in writing to BAB for approval, within sixty (60) days after execution of this Preliminary Agreement, a site suitable for the operation of a BAGELS Store acceptable to BAB within the following area: _______________________________ (the "Area").
- a. The Area is not exclusive or protected either during the term of this Agreement or in the event a franchise is granted. BAB has the right to offer and grant a franchise to any other party within the Area. In the event BAB grants a franchise, whether a franchise for a BAGELS Franchise of a "My Favorite Muffin Store" to another party within the Area during the term of this Agreement, PROSPECTIVE FRANCHISEE may terminate this Agreement and obtain a full refund of the Deposit. In the event PROSPECTIVE FRANCHISEE enters into an Area Development Agreement with BAB, and becomes an Area Developer, he will have a protected territory, as set forth in the Area Development Agreement.
- b.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels FDD, the "Area" refers to a geographical location identified for a prospective franchisee to locate a Big Apple Bagels store. Within 60 days of signing a Preliminary Agreement, the prospective franchisee must find and submit a potential site within this designated area for Big Apple Bagels's approval. However, this "Area" is not exclusive or protected, meaning Big Apple Bagels can grant franchises to others within the same area.
Big Apple Bagels retains the right to approve or disapprove any proposed site based on various factors. These factors include general location, physical and demographic characteristics of the neighborhood, traffic patterns, parking availability, competition, proximity to other businesses (including existing Big Apple Bagels stores), the nature of nearby businesses, layout, physical characteristics, rental costs, lease duration, and other lease terms.
If the prospective franchisee submits at least one site within the 60-day period that Big Apple Bagels does not approve, Big Apple Bagels has the option to extend the period or terminate the agreement, refunding the deposit minus $3,000. However, if the prospective franchisee enters into an Area Development Agreement with Big Apple Bagels and becomes an Area Developer, they will have a protected territory as defined in that separate Area Development Agreement.