What is the condition for the effectiveness of the Big Apple Bagels Virginia addendum?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum is to a BAGELS Franchise Agreement dated , 20 between BAB Systems, Inc. and (Franchisee) to amend said Agreement as follows: 1. Paragraph 16.a.x. of the BAGELS Franchise Agreement on Termination for Failure to Complete Training is amended to read in its entirety as follows: Successful Completion of Training. The grant of the franchise herein is conditioned upon successful completion of the sales/operations seminar and technical training seminar by Franchisee (or Franchisee's individual owner if Franchisee is a corporation, partnership, or other entity.) If during the course of the training programs or within fifteen (15) days thereafter Franchisor concludes that Franchisee has not successfully completed the sales/operations seminar and technical training seminar, may, in its sole discretion and judgment, cancel this Agreement and all rights hereunder, where permitted by applicable law, by giving notice to Franchisee and tendering to Franchisee a refund of its initial franchise fee less an amount to cover the reasonable expenses incurred by Franchisor in connection with training Franchisee. Franchisee agrees that such refund shall be the full extent of Franchisor's liability and responsibility in the event of such cancellation, and Franchisee and its owners shall execute a general release, in a form satisfactory to Franchisor, of any and all claims against Franchisor and its affiliates, officers, directors, employees and agents. Upon cancellation of this Agreement, Franchisee shall return to Franchisor all materials, manuals, information and all other items that Franchisee received from Franchisor, including all copies thereof and notes thereon which Franchisee may have or control. Franchisee further agrees to maintain strictly the confidentiality of all information received relating to the BAB System and not to use in the operation of a food service or similar business, any trade secrets or confidential information obtained from Franchisor in the course of the training program or otherwise. In witness whereof, each of the undersigned hereby acknowledges having read this Addendum, understands and consents to be bound by all of its terms, and agrees it shall become effective the day of, 20 BAB SYSTEMS, INC.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the Virginia addendum includes a condition regarding the effectiveness of the franchise agreement. Specifically, the grant of the Big Apple Bagels franchise is contingent upon the franchisee's successful completion of both the sales/operations seminar and the technical training seminar. This requirement extends to the individual owner if the franchisee is a corporation, partnership, or other entity.
If Big Apple Bagels determines that the franchisee has not successfully completed these training programs, either during the course of the training or within fifteen days after, Big Apple Bagels has the discretion to cancel the franchise agreement. This cancellation is permissible where allowed by applicable law. In the event of cancellation, Big Apple Bagels will provide notice to the franchisee and refund the initial franchise fee, deducting an amount to cover the reasonable expenses incurred by Big Apple Bagels in connection with the training.
The refund of the initial franchise fee, less expenses, represents the full extent of Big Apple Bagels' liability in the event of cancellation. As a condition of receiving the refund, the franchisee and its owners must execute a general release, in a form satisfactory to Big Apple Bagels, releasing any and all claims against Big Apple Bagels and its affiliates, officers, directors, employees, and agents. Upon cancellation, the franchisee is obligated to return all materials, manuals, information, and other items received from Big Apple Bagels, including all copies and notes. Furthermore, the franchisee must maintain strict confidentiality of all information received relating to the Big Apple Bagels system and refrain from using any trade secrets or confidential information obtained during the training program in any food service or similar business.