For Big Apple Bagels, what must a developer do before the franchisor will approve a site?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Subject to the provisions of Section 3 hereof, Franchisor agrees to grant franchises to Developer for the operation of BAGELS Stores located within the Exclusive Area, subject to the following:
- (1) Developer must execute a franchise agreement and pay the applicable franchise fee before Franchisor will approve a site.
- (2) When Developer selects a site under a franchise agreement, he shall submit to Franchisor a complete site report (containing such demographic, commercial, and other information and photographs as Franchisor may reasonably require) for each site at which Developer proposes to establish and operate a BAGELS Store and which Developer reasonably believes to conform to site selection criteria established by Franchisor from time to time. Such proposed site shall be subject to Franchisor's prior written approval. In approving or disapproving any proposed site, Franchisor will consider such matters as it deems material, including without limitation, demographic characteristics of the proposed site, traffic patterns, parking, the predominant character of the neighborhood, competition from other similar stores, the proximity to other businesses (including other BAGELS Stores), and other commercial characteristics (including the purchase price or rental obligations and other lease terms for the proposed site) and the size of premises, appearance, and other physical characteristics; and
- (3) Developer acknowledges that in order to preserve and enhance the reputation and goodwill of all Stores and the goodwill of the Marks, all BAGELS Stores must be properly developed and operated. Accordingly, Developer agrees that Franchisor may refuse to grant to Developer a franchise for a proposed BAGELS Store, unless in Franchisor's reasonable judgment demonstrates sufficient financial capabilities to properly develop and operate the BAGELS Store. To this end, Developer shall furnish to Franchisor such financial statements and development plans and other information regarding Developer
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a developer must fulfill two key requirements before the franchisor approves a site for a new Big Apple Bagels store. First, the developer must execute a franchise agreement. Second, the developer must pay the applicable franchise fee. These steps ensure that the developer is formally committed to the Big Apple Bagels system and has provided the necessary initial investment.
In addition to these prerequisites, once a franchise agreement is in place, the developer needs to submit a comprehensive site report to Big Apple Bagels for each proposed location. This report should include detailed demographic, commercial, and photographic information that allows Big Apple Bagels to assess whether the site meets their established criteria. The franchisor's approval process involves considering factors such as local demographics, traffic patterns, parking availability, the character of the neighborhood, competition from similar businesses, proximity to other businesses (including existing Big Apple Bagels stores), purchase price or rental obligations, lease terms, and the physical characteristics of the premises.
Furthermore, Big Apple Bagels emphasizes the importance of maintaining the brand's reputation and goodwill. As such, the franchisor may refuse to grant a franchise if they believe the developer lacks the financial capabilities to properly develop and operate the store. To evaluate this, Big Apple Bagels may request financial statements, development plans, pro forma statements, and investment and financing plans from the developer. This thorough evaluation process ensures that all Big Apple Bagels stores are set up for success and uphold the brand's standards.