What is the condition for the franchisor to cancel the Big Apple Bagels franchise agreement in Virginia?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, the franchisor, BAB Systems, Inc., has the right to cancel the franchise agreement in Virginia if the franchisee does not successfully complete the sales/operations seminar and technical training seminar. This condition applies to the franchisee or the franchisee's individual owner if the franchisee is a corporation, partnership, or other entity.
BAB Systems, Inc. can exercise this right if, during the training programs or within 15 days after, they conclude that the franchisee has not successfully completed the required seminars. If BAB Systems, Inc. decides to cancel the agreement, they must provide notice to the franchisee and refund the initial franchise fee, deducting an amount to cover the reasonable expenses incurred by the franchisor in connection with the training.
The refund of the initial franchise fee less training expenses represents the full extent of the franchisor's liability in the event of cancellation. The franchisee and their owners must execute a general release, in a form satisfactory to the franchisor, releasing any claims against the franchisor and its affiliates. Upon cancellation, the franchisee is obligated to return all materials, manuals, information, and other items received from the franchisor, including copies and notes. The franchisee must also maintain the confidentiality of all information related to the BAB System and refrain from using any trade secrets or confidential information obtained during the training program in any food service or similar business.