Who is the contract for Big Apple Bagels with?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
action which might be brought by any depositor or any other persons because of your actions taken pursuant to the foregoing request, or in any manner arising by reason of your participation.
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Rider E
TO THE BAB SYSTEMS, INC. FRANCHISE AGREEMENT
SECURITY AGREEMENT
| This Security Agreement dated is by and between | ||
|---|---|---|
| BAB Systems, Inc., an Illinois corporation, of 500 Lake Cook Road, Suite 475, Deerfield, Illinois | ||
| 60015 | ("Secured Party") and | |
| , whose principal place of business is ("Debtor"). RECITALS | ||
| A. | Debtor is a franchisee under a Franchise Agreement dated ("Franchise Agreement") with Secured Party as Franchisor, pursuant to which Franchise Agreement Debtor has ongoing monetary and non-monetary obligations to Secured Party. | |
| B. | Debtor has locations at which Debtor operates businesses known as "Big Apple Bagels" ("BAGELS Stores"), pursuant to the Franchise Agreement; the addresses of the locations are listed on Schedule "A" attached hereto and incorporated herein by reference. | |
| C. | Debtor is giving Secured Party a security interest in the collateral described in this | |
| Agreement. | NOW THEREFORE, in consideration of the several and mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: | |
| 1. | The Recitals set forth above shall be incorporated into this part of the Agreement as though they were fully set forth herein. | |
| 2. |
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the franchise agreement is between the franchisee and BAB Systems, Inc., who acts as the franchisor. BAB Systems, Inc. grants the franchisee the right to operate a Big Apple Bagels store. The agreement outlines the franchisee's obligations, including monetary and non-monetary responsibilities to BAB Systems, Inc.
The franchise agreement specifies whether the store will be a Big Apple Bagels Production Store or a Big Apple Bagels Satellite Store. This distinction is important as it determines the store's capacity for production, baking, and distribution of various menu items. The agreement also covers aspects like catering programs, wholesale distribution, and adherence to brand standards.
Additionally, the franchisee may enter into a security agreement with BAB Systems, Inc., which gives the franchisor a security interest in the franchisee's assets, including equipment, inventory, and accounts receivable. This security interest ensures that BAB Systems, Inc. has recourse in case the franchisee fails to meet their financial obligations under the franchise agreement.