Does Big Apple Bagels assist franchisees in selecting a site for their store?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
BAB or its delegate will assist you in selecting a site for the Store (Paragraph 3.a, Franchise Agreement). However, you are responsible for locating the site.
BAB must approve the site for your BAGELS Store. You must locate the site, using a licensed real estate broker who specializes in commercial real estate. You must submit detailed site information to BAB as BAB prescribes. BAB considers the following factors in approving a site: the demographic characteristics, traffic patterns, parking, character of neighborhood, competition from other businesses within the area, the proximity to other businesses (including other BAGELS Stores), and the size, appearance and other physical characteristics of the site. The lease for the site must include certain provisions required by BAB and stated in the Franchise Agreement. BAB does not generally own the premises for a BAB Store and lease it to a franchisee.
If you sign a Preliminary Agreement, then, under Paragraph 5 of that Agreement, BAB will expend such time and effort and incur such expense as may reasonably be required to inspect sites you propose. If you submit at least 1 site to BAB within the 60 days, but the site is not approved, BAB may, at any time thereafter at its sole discretion, either grant an extension to the above referenced 60 day period or terminate the Preliminary Agreement. If BAB elects to terminate the Preliminary Agreement, it shall refund all but $3,000 of the deposit. If you fail to submit even 1 site to BAB within the 60 days, you will not be entitled to a refund of any of the deposit. If you fail to locate a site we approve, you will not be granted a franchise. If you and BAB cannot agree on a site, and you have signed a Preliminary Agreement, then we will not enter into a Franchise Agreement with you. Refundability of a portion of the deposit will depend on the timing and circumstances described above.
If you elect not to sign a Preliminary Agreement, BAB will approve or disapprove a site you select within 15 business days of the date we receive all the information we require regarding your proposed site, which may include a site visit. You must select a site and submit it to us for our approval within 90 days of signing the Franchise Agreement. If you fail to do so, BAB can terminate your franchise, and none of your Franchise Fee will be refunded. If you and BAB cannot agree on a site, and you have not signed a Preliminary Agreement, BAB can terminate your franchise, and none of your Franchise Fee will be refunded.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 42–53)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels does provide assistance in site selection for the store. However, the franchisee is ultimately responsible for locating the site, and they must use a licensed real estate broker specializing in commercial real estate.
Big Apple Bagels must approve the site, and they consider factors such as demographic characteristics, traffic patterns, parking, neighborhood character, competition, proximity to other businesses (including other Big Apple Bagels stores), and the site's physical characteristics. The lease for the site must also include specific provisions required by Big Apple Bagels, as stated in the Franchise Agreement.
If a franchisee signs a Preliminary Agreement and submits at least one site within 60 days, Big Apple Bagels will inspect the proposed sites. If the site is not approved, Big Apple Bagels may extend the 60-day period or terminate the agreement, refunding all but $3,000 of the deposit. Failure to submit a site within 60 days results in forfeiture of the entire deposit. If the franchisee and Big Apple Bagels cannot agree on a site, and a Preliminary Agreement was signed, Big Apple Bagels will not enter into a Franchise Agreement, with deposit refundability depending on the timing and circumstances.
If the franchisee does not sign a Preliminary Agreement, Big Apple Bagels will approve or disapprove a selected site within 15 business days of receiving all required information, which may include a site visit. The franchisee must select and submit a site for approval within 90 days of signing the Franchise Agreement. Failure to do so allows Big Apple Bagels to terminate the franchise without refunding the Franchise Fee. If no agreement on a site is reached and no Preliminary Agreement was signed, Big Apple Bagels can terminate the franchise without refunding the Franchise Fee.