What is the consequence if a Big Apple Bagels franchisee attempts to transfer without approval?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. Franchisee May Not Transfer Without Approval of Franchisor. Franchisee understands and acknowledges that the rights and duties created by this Agreement are personal to Franchisee (and its owners) and that Franchisor has granted the Franchise to Franchisee (and its owners) in reliance upon the individual or collective character, skill, aptitude, attitude, business ability and financial capacity of Franchisee (and its owners). Accordingly, neither this Agreement nor the Franchise (or any interest therein), nor any part or all of the ownership of Franchisee or of the assets of Franchisee or the BAGELS Store (or any interest therein) may be transferred, sold, assigned, pledged, mortgaged or liened without the prior written approval of Franchisor, and any such transfer or attempt to transfer without such approval shall constitute a breach hereof, such be null and void, and shall convey no rights to or interests in this Agreement, the Franchise, Franchisee, the BAGELS Store or its assets.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a franchisee cannot transfer their rights or duties without prior written approval from the franchisor. This includes the Franchise Agreement itself, the franchise, any ownership interest in the franchisee, or the assets of the Big Apple Bagels store.
If a Big Apple Bagels franchisee attempts to transfer any of these interests without obtaining the necessary approval from Big Apple Bagels, the attempted transfer will be considered a breach of the Franchise Agreement.
The consequence of an unapproved transfer is that it will be deemed null and void, meaning it has no legal effect. The attempted transfer will not convey any rights or interests in the Franchise Agreement, the franchise itself, the franchisee's business, the Big Apple Bagels store, or any of its assets. This protects Big Apple Bagels' interests by ensuring that only approved and qualified individuals or entities become franchisees.