What must a Big Apple Bagels Developer do if they decide to sell an interest in the Agreement?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Franchisor's Right of First Refusal. If Developer or its owners shall at any time determine to sell an interest in this Agreement or a controlling ownership interest in Developer, Developer or its owners shall obtain a bona fide, executed written offer from a responsible and fully disclosed purchaser and shall immediately submit an exact copy of the offer to Franchisor. To be a valid, bona fide offer, the proposed purchase price must be in a dollar amount, and the proposed buyer must submit with its offer an earnest money deposit equal to at least five percent (5%) or more of the offering price. Franchisor shall have the right, exercisable by written notice delivered to Developer or its owners within thirty (30) days from the date of delivery of an exact copy of such offer to Franchisor, to purchase such interest for the price and on the terms and conditions contained
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, if a Developer or its owners decide to sell an interest in the Development Agreement or a controlling ownership interest in the Developer entity, they must first obtain a bona fide, executed written offer from a responsible and fully disclosed purchaser. This offer must include a specific dollar amount for the proposed purchase price.
The Developer or its owners are then required to immediately submit an exact copy of this offer to Big Apple Bagels. To ensure the offer is serious, the proposed buyer must also submit an earnest money deposit equal to at least five percent (5%) of the offering price along with their offer.
Big Apple Bagels then has the right of first refusal, meaning they have the option to purchase the interest themselves for the same price and under the same terms and conditions as the offer. Big Apple Bagels must exercise this right by delivering written notice to the Developer or its owners within thirty (30) days from the date they received a copy of the offer. This process allows Big Apple Bagels to maintain control over who becomes involved in the development of their franchises.