What is a condition that would prevent a Big Apple Bagels franchisee from renewing their franchise agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ination of the Franchise Agreement of Franchisee's BAGELS Production Store, unless sooner terminated as provided in Sections 15 and 16 hereof.
b. Renewal.
i. For a BAGELS Production Store Franchise or a BAGELS Satellite Store Franchise, Franchisee may, at his option, renew the Franchise for two additional ten (10) year terms, provided that:
- (a) Franchisee has given Franchisor written notice of his election to renew not less than six (6) months nor more than twelve (12) months prior to the end of the then-current term. An election by Franchisee to renew the lease or sublease for the premises of the Store or to execute a new lease or sublease for such premises shall, at the sole option of Franchisor, be deemed an election by Franchisee to extend the franchise for the initial term of the lease or sublease, plus the term of any options and/or extensions, of such lease or sublease;
- (b) Franchisee is not at such time in material breach of any of his obligations under this Agreement or any other agreement between Franchisee and Franchisor or any of its Affiliates;
- (c) Franchisee has substantially complied with all the terms and conditions of this Agreement and has met the operating and quality standards and procedures prescribed by Franchisor for BAGELS Stores during the Term;
- (d) Franchisee has satisfied all monetary obligations owed to Franchisor, its Affiliates and designated suppliers, and has timely met these obligations throughout the Term;
- (e) Franchisee's store location and lease have been approved by Franchisor;
- (f) Franchisee has agreed to upgrade the Store to Franchisor's thencurrent standards of decor, equipment, and product offerings;
- (g) Franchisee has paid Franchisor the renewal fee of Two Thousand Five Hundred Dollars ($2,500.00);
- (h) Franchisee complies with Franchisor's then-current qualification and training requirements; and
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a franchisee may be prevented from renewing their franchise agreement if they are in material breach of any of their obligations under the agreement or any other agreement between the franchisee and Big Apple Bagels or its affiliates. This means that if a franchisee fails to meet the requirements outlined in their franchise agreement, such as maintaining operating and quality standards, or if they violate any other agreements with the franchisor, they may not be eligible for renewal.
Another condition that would prevent a Big Apple Bagels franchisee from renewing their franchise agreement is a failure to substantially comply with all the terms and conditions of the agreement and meet the operating and quality standards and procedures prescribed by Big Apple Bagels for its stores during the term. This highlights the importance of adhering to the franchisor's standards throughout the duration of the franchise agreement.
Additionally, a Big Apple Bagels franchisee cannot renew their franchise agreement if they have not satisfied all monetary obligations owed to the franchisor, its affiliates, and designated suppliers, or if they have not timely met these obligations throughout the term. This underscores the necessity of maintaining good financial standing with the franchisor and its related entities. Furthermore, the franchisee must upgrade the store to Big Apple Bagels' then-current standards of decor, equipment, and product offerings, pay a $2,500 renewal fee, comply with current qualification and training requirements, and execute a general release of claims against the franchisor to be eligible for renewal.