What conditions must be met for Big Apple Bagels to approve a transfer by a franchisee?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
|---|---|---|
| a. Length of the franchise | Paragraph 2.a. | 10 years |
| term | ||
| b .Renewal or extension of | Paragraph 2.b. | If you are in good standing, you can renew on the then current terms |
| the term | ||
| c. Requirements for Franchisee to renew or extend | Paragraph 2.b. | Pay renewal fee of $2,500, maintain premises or secure substitute premises, remodel, sign new agreement and other documents and sign release, and agree to upgrade to then-current standards of decor, equipment, and product offerings. The renewal agreement may contain materially different terms and conditions than your original contract, but the royalty fee will not be greater than the royalty fee that we then impose on similarly-situated renewing franchisees |
| d. Termination by | Section 15 | Breach by BAB, you in compliance. Additionally, you may terminate |
| Franchisee | the agreement under any grounds permitted by law. | |
| e. Termination by | Not Applicable | BAB cannot terminate your Franchise Agreement without cause |
| Franchisor without cause | ||
| f. Termination by | Section 16 | BAB can terminate only if you commit any 1 of several listed |
| Franchisor with cause | violations | |
| g. "Cause" defined – curable faults | Section 16 | You have 10 days for monetary defaults and failure to maintain required insurance, and 30 days for all defaults not listed in Paragraph 16.a. |
| h. "Cause" defined – non- curable defaults | Section 16 | Failure to submit site within 90 days, failure to open Store in 4 months of possession, failure to complete initial training, abandonment, conviction of felony, unauthorized transfers, unauthorized use or disclosure of confidential information or BAGELS Operations Manual, unauthorized use of Marks, creation of a threat to public health or safety, repeated defaults (even if cured), unapproved transfer upon your death or permanent incapacity, failure to comply with covenants in Paragraph 9.f; termination of other agreement between BAB and you. |
| i. Franchisee’s obligations on termination/ nonrenewal | Section 17 t | Franchise Agreement: Pay outstanding amounts, complete de- identification, return confidential information, covenant not to compete, continuing obligations, BAB option to purchase. |
| j. Assignment of contract | Paragraph 14.a. | No restrictions on BAB's right to assign |
| by Franchisor | ||
| k. "Transfer" by Franchisee | Paragraph 14.b | Includes transfer of any interest in Franchise Agreement, assets or |
| – definition | ownership change in you | |
| Provision | Provision in Franchise Agreement (unless otherwise specified) | Summary |
| l. Franchisor's approval of | Paragraph 14.c. | Franchise Agreement: BAB has right to approve all transfers, but will |
| transfer by Franchisee | not unreasonably withhold consent. | |
| m. Conditions for Franchisor's approval of transfer | Paragraph 14.b.,14.c. | Transferee qualifies, all obligations assumed by transferee, all amounts due BAB are paid, transferee completes training, transfer fee paid, general release signed, you agree to guarantee performance and obligations of transferee, transferee signs, at BAB's sole discretion, either: (a) BAB's assignment and assumption agreement or (b) BAB's then-current Franchise Agreement, which may contain materially different terms than your Franchise Agreement |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 69–75)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, Big Apple Bagels has the right to approve all transfers, but will not unreasonably withhold consent.
For a franchisee to transfer their franchise, the following conditions must be met: the transferee must qualify, the transferee must assume all obligations, all amounts due to Big Apple Bagels must be paid, the transferee must complete training, a transfer fee must be paid, a general release must be signed, and the franchisee must agree to guarantee the performance and obligations of the transferee.
Additionally, the transferee must sign, at Big Apple Bagels's sole discretion, either Big Apple Bagels's assignment and assumption agreement or Big Apple Bagels's then-current Franchise Agreement, which may contain materially different terms than the original Franchise Agreement. This means that a prospective franchisee needs to be aware that the terms of the franchise agreement could change upon transfer.