What must a Big Apple Bagels 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 in the development and operation of the proposed BAGELS Stores (including, without limitation pro forma statements and investment and financing plans for the proposed BAGELS Store) as Franchisor may reasonably require.
B. By delivery of written notice to Developer, Franchisor will approve or disapprove sites proposed by Developer for the operation of a BAGELS Store. Franchisor agrees to exert its best efforts to deliver such notification to Developer within thirty (30) days of receipt by Franchisor of the complete site reports and the financial statements and other materials reasonably required by Franchisor. If Developer shall fail to execute a lease within thirty (30) days after delivery of Franchisor's approval thereof, Franchisor may, at its sole discretion, withdraw approval of such site.
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 execute a franchise agreement and pay the applicable franchise fee before Big Apple Bagels will approve a site. Additionally, when a Developer selects a site under a franchise agreement, they must submit a complete site report to Big Apple Bagels for each proposed location. This report should include demographic, commercial, and other information, along with photographs, as reasonably required by Big Apple Bagels. The proposed site is subject to Big Apple Bagels' prior written approval.
Big Apple Bagels will consider various factors when deciding whether to approve a site. These factors include the demographic characteristics of the proposed site, traffic patterns, parking availability, the neighborhood's character, competition from similar stores, proximity to other businesses (including other Big Apple Bagels stores), commercial characteristics such as purchase price or rental obligations and other lease terms, and the size, appearance, and physical characteristics of the premises.
Furthermore, the Developer must demonstrate sufficient financial capabilities to properly develop and operate the Big Apple Bagels store. To this end, the Developer must furnish financial statements, development plans, and other information regarding the development and operation of the proposed store, including pro forma statements and investment and financing plans, as reasonably required by Big Apple Bagels. Big Apple Bagels will notify the Developer in writing whether the proposed site is approved or disapproved. Big Apple Bagels agrees to exert its best efforts to deliver such notification to the Developer within thirty (30) days of receipt of the complete site reports and the financial statements and other materials reasonably required by Big Apple Bagels. If the Developer fails to execute a lease within thirty (30) days after delivery of Big Apple Bagels' approval, Big Apple Bagels may withdraw approval of such site.