What is the deposit amount required from the prospective franchisee for a Big Apple Bagels franchise?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
l consider, subject to the terms and conditions hereof, granting a BAGELS Franchise to PROSPECTIVE FRANCHISEE.
- F. Under a separate offering and disclosure document, Franchisor, BAB Systems, Inc., operates a franchise distribution system to own and operate stores ("My Favorite Muffin Stores") for retail
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a prospective franchisee must deposit $10,000 with Big Apple Bagels upon signing the Preliminary Agreement. This deposit will be applied towards the initial franchise fee if a franchise is granted.
However, this deposit is not always fully refundable. If the prospective franchisee withdraws their application before Big Apple Bagels approves a site, they are entitled to a refund of the deposit, less $3,000. This $3,000 is intended to cover expenses incurred by Big Apple Bagels for research, demographic data, preliminary layouts, site inspection, travel, employee compensation, and legal fees.
Furthermore, if the prospective franchisee fails to submit any potential sites within 60 days, Big Apple Bagels has the right to terminate the Preliminary Agreement, and the prospective franchisee will not receive any refund of the $10,000 deposit. Similarly, if Big Apple Bagels disapproves a site submitted within the 60-day period, they may either extend the period or terminate the agreement, refunding the deposit less $3,000.
These conditions highlight the importance of carefully evaluating the site selection criteria and diligently searching for suitable locations within the specified timeframe to protect the deposit. The prospective franchisee should also understand that Big Apple Bagels' approval of a site does not guarantee its suitability or potential revenue, as demographic and economic factors can change.