What constitutes a material misrepresentation or omission by the Developer (or its members) in the application for development rights with Big Apple Bagels?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor expressly disclaims the making of, and Developer acknowledges that he has not received or relied upon, any warranty or guaranty, express or implied, as to the revenues, profits or success of the business venture contemplated by this Agreement. Developer acknowledges that he has not received or relied on any representations, written or oral, about the franchise by Franchisor, or its officers, directors, employees or agents, that are contrary to the statements made in Franchisor's Franchise Disclosure Document or to the terms herein, and further represents to Franchisor, as an inducement to its entry into this Agreement that Developer has made no misrepresentations, written or oral, to Franchisor in his application for the development rights granted hereunder.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the developer represents to Big Apple Bagels, as an inducement to its entry into the Development Agreement, that the developer has made no misrepresentations, either written or oral, to Big Apple Bagels in the application for the development rights granted. This means that all information provided by the developer in their application must be truthful and accurate.
A material misrepresentation or omission would involve providing false or misleading information that could influence Big Apple Bagels' decision to grant development rights. This could include exaggerating financial capabilities, concealing relevant business experience, or failing to disclose conflicts of interest. The FDD emphasizes that Big Apple Bagels relies on the developer's representations when granting these rights.
Prospective developers should ensure that all information provided in their application is accurate, complete, and transparent. Failure to do so could result in the termination of the Development Agreement and potential legal consequences. It is also important to understand that Big Apple Bagels has the right to conduct its own due diligence to verify the information provided by the developer.