Is the area designated in the Preliminary Agreement for a Big Apple Bagels franchise exclusive or protected?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ery" 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.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the area designated in the Preliminary Agreement is not exclusive or protected. During the term of the Preliminary Agreement, Big Apple Bagels retains the right to offer and grant franchises to other parties, including franchises for Big Apple Bagels or My Favorite Muffin stores, within the designated area.
However, if the prospective franchisee enters into an Area Development Agreement with Big Apple Bagels, they will then have a protected territory as defined in that separate Area Development Agreement. This implies that the initial Preliminary Agreement does not offer territorial exclusivity, but a later agreement might.
If Big Apple Bagels grants a franchise to another party within the area during the term of the Preliminary Agreement, the prospective franchisee has the option to terminate the agreement and receive a full refund of their deposit. This provides a degree of protection, allowing the prospective franchisee to exit the agreement without financial loss if Big Apple Bagels decides to grant a franchise to someone else in the same area. Prospective franchisees should carefully consider these terms and the implications for their potential market area before signing the Preliminary Agreement.