What characteristics must the assignee, transferee, or purchaser have to be approved by the Big Apple Bagels franchisor?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
of business or at such other location that Franchisor designates. A transfer of ownership in the BAGELS Store may only be made in conjunction with a transfer of this Franchise Agreement. All of the following conditions must be met prior to or concurrently with the effective date of the transfer (unless otherwise specified):
- (1) the assignee, transferee or purchaser shall have been approved by Franchisor for financial responsibility, good moral character and suitability as an operator of a BAGELS Store;
- (2) Franchisee shall pay to Franchisor prior to transferee attending the required training program a transfer fee of Five Thousand Dollars ($5,000.00), which is not refundable in whole or in part under any circumstances;
- (3) the assignee, transferee or purchaser shall not be engaged in any activity which would be prohibited by Paragraph 9.f. of this Agreement;
- (4) Franchisee shall have paid all outstanding debts and obligations to Franchisor and its Affiliates, including the royalty fees and all amounts due the Marketing Fund, and to its designated suppliers;
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, any assignee, transferee, or purchaser must be approved by Big Apple Bagels based on financial responsibility, good moral character, and suitability as an operator of a Big Apple Bagels store. This indicates that Big Apple Bagels wants to ensure that anyone taking over a franchise location has the necessary resources and ethical standards to maintain the brand's reputation and operational effectiveness.
To ensure compliance, the prospective transferee must meet Big Apple Bagels' standards for franchisees. Big Apple Bagels will interview and evaluate the proposed transferee. The transferee must not be engaged in any activity prohibited by Paragraph 9.f of the Franchise Agreement.
These requirements are typical in franchising, as franchisors need to protect their brand and ensure consistent quality across all locations. The evaluation process allows Big Apple Bagels to assess whether the potential transferee has the skills, experience, and financial stability to successfully run the franchise. By setting these standards, Big Apple Bagels aims to minimize the risk of franchise failure and maintain a strong, reputable network of franchisees.
Additionally, the transferee must complete Big Apple Bagels' training programs modified for transferees, at their own expense, and at a time and place designated by Big Apple Bagels. If the transfer is for a Big Apple Bagels Satellite Store, the transferee must have a Big Apple Bagels Production Store. The transferee must also submit a Store Opening Marketing Fee of $1,000 to conduct a "re-Grand Opening."