What is a Big Apple Bagels Developer obligated to do regarding store openings?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
BAB, under its standard Area Development Agreement (the "Area Development Agreement"), also grants to certain qualified persons ("Developers") the right, subject to certain terms and conditions, to develop and operate BAGELS Stores within defined geographical areas.
A Developer is obligated to open certain cumulative numbers of BAGELS Production Stores and/or BAGELS Satellite Stores ("Minimum Development Quota") over a number of development
periods, each of which is approximately 6 months in duration ("Development Periods"). Minimum Development Quota and Development Periods are determined by BAB and the Developer on the basis of the market potential, size of the designated area, and through an analysis of the financial and operational capabilities of Developer. With respect to each BAGELS Production Store and BAGELS Satellite Store opened by Developer in his designated area, Developer must sign BAB's then current form of Franchise Agreement, which may differ from the current Franchise Agreement included in this disclosure document. The amount of the initial franchise fee will be described in Item 5, and will not be subject to increase. Subject to certain terms and conditions, Developer's right to own and operate Stores within the designated area is exclusive so long as the Area Development Agreement is in effect.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATE (FDD pages 10–15)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, a Developer is granted the right to develop and operate Big Apple Bagels stores within specific geographical areas, subject to certain terms and conditions outlined in the Area Development Agreement. The Developer is obligated to open a certain number of BAGELS Production Stores and/or BAGELS Satellite Stores, referred to as the "Minimum Development Quota," over a series of development periods. Each development period is approximately six months in duration.
The Minimum Development Quota and the length of the Development Periods are determined by Big Apple Bagels based on factors such as the market potential, the size of the designated area, and an assessment of the Developer's financial and operational capabilities. This suggests that Big Apple Bagels tailors the development schedule to the specific circumstances of each Developer and their territory.
For each Big Apple Bagels Production Store and Big Apple Bagels Satellite Store that the Developer opens within their designated area, they must sign Big Apple Bagels' then-current form of Franchise Agreement. The FDD notes that this agreement may differ from the current Franchise Agreement included in the disclosure document. The initial franchise fee will be described in Item 5 and will not be subject to increase. Subject to certain terms and conditions, the Developer's right to own and operate stores within the designated area is exclusive as long as the Area Development Agreement remains in effect. This exclusivity provides the Developer with a protected market, encouraging investment and growth within their territory.