What constitutes a 'permanent disability' for a Big Apple Bagels franchisee or owner of a controlling interest?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, a franchisee or owner of a controlling interest in the franchise is considered to have a "permanent disability" if their active participation in the Big Apple Bagels store is curtailed for a continuous period of three months. This definition is important because it triggers certain contractual obligations and potential actions related to the operation and transfer of the franchise.

Specifically, upon such a determination of permanent disability, the franchisee's representative (e.g., executor, administrator, or guardian) is required to transfer the franchisee's interest in the franchise to a third party approved by Big Apple Bagels within six months. Additionally, within 30 days of the disability determination, a manager must be appointed to operate the store, subject to Big Apple Bagels' approval and potential training requirements.

If the store is not managed properly in Big Apple Bagels' judgment, Big Apple Bagels has the right to appoint a manager for up to 30 days, during which the franchisee must either provide additional training to their manager or appoint a new one. Failure to comply with these requirements can result in the termination of the franchise agreement. This definition ensures business continuity and adherence to Big Apple Bagels' standards even in the event of a franchisee's disability.