In the Big Apple Bagels assignment agreement, what is the role of the 'control person'?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignment permitting the COMPANY, at its sole option, to terminate the AGREEMENT; provided, however, that in the event of death or disability of the control person that the provisions of Section 14.c of the Franchise Agreement and Section 12.B of the Area Development Agreement shall control to the same extent as if the control person were the franchisee under the AGREEMENT.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the 'control person' is referenced within the assignment agreement in the event of their death or disability. Specifically, the assignment agreement allows Big Apple Bagels to terminate the agreement. However, if the control person dies or becomes disabled, Section 14.c of the Franchise Agreement and Section 12.B of the Area Development Agreement will take precedence.
In essence, the control person's death or disability triggers specific provisions within the Franchise Agreement and Area Development Agreement. These sections dictate how the franchise will be handled in such circumstances, providing a framework for transferring the interest in the franchise to a third party.
For a prospective Big Apple Bagels franchisee, this means that the role of the 'control person' is critical in determining the future of the franchise in the event of unforeseen circumstances like death or disability. It ensures that there are established procedures for transferring ownership and maintaining the operation of the Big Apple Bagels store.