When does the Assignment Agreement (Exhibit M) apply to a Big Apple Bagels franchise?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Exhibit B with Riders | Franchise Agreement for BAGELS Production Store and BAGELS Satellite Store, |
|---|---|
| Exhibit C | Area Development Agreement |
| Exhibit D | Disclosure Acknowledgement Statement |
| Exhibit F | Wholesale Program Addendum |
| Exhibit G | Catering Program Addendum |
| Exhibit L | General Release (to be signed upon renewal or assignment of the franchise) |
| Exhibit M | Assignment Agreement (applies only if you are assigning your franchise to a corporation, limited liability company, or other entity controlled by you |
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, Exhibit M, the Assignment Agreement, applies when a franchisee is assigning their franchise to a corporation, limited liability company, or another entity that they control. This agreement outlines the terms and conditions under which the franchise rights can be transferred to such an entity.
This is important for a Big Apple Bagels franchisee because it provides a mechanism for transferring the franchise to a business entity, which may be desirable for liability or tax reasons. The franchisee maintains control over the business even after the assignment. The FDD also mentions Exhibit N, which is a different assignment agreement that applies when the franchise is being assigned to an unrelated franchisee.
It is crucial for prospective franchisees to carefully review both assignment agreements (Exhibits M and N) and understand the specific requirements and implications of each. Franchisees should consult with legal and financial advisors to determine the most appropriate structure for their business and to ensure compliance with the terms of the Franchise Agreement. Understanding these conditions is essential for managing the franchise effectively and planning for potential future business transitions.