What constitutes a 'transfer' by a Big Apple Bagels 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 |
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, a 'transfer' by a franchisee encompasses more than just selling the franchise to someone else. Specifically, it includes the transfer of any interest in the Franchise Agreement itself. This means that if a franchisee attempts to assign, sell, or otherwise convey their rights and obligations under the agreement, it is considered a transfer.
Furthermore, the definition of 'transfer' extends to the assets of the franchise. If a franchisee sells or transfers the business's tangible or intangible assets, this also falls under the definition of a transfer. This could include equipment, inventory, customer lists, or any other property associated with the Big Apple Bagels franchise.
Finally, a transfer also includes any change in the ownership of the franchisee's business entity. This means that if the franchisee is a corporation, partnership, or limited liability company, any transaction that results in a change of control or ownership of that entity is considered a transfer. This broad definition ensures that Big Apple Bagels retains control over who operates its franchises and maintains brand standards.