Is the Development Fee paid to Big Apple Bagels refundable?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Development Fee. Concurrently with the execution of this Agreement, Developer shall pay to Franchisor the sum set forth in Paragraph 1 of Rider B hereof as a nonrefundable Development Fee which shall be deemed fully earned by Franchisor upon execution of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the development fee is nonrefundable. Specifically, the FDD states that upon execution of the Development Agreement, the development fee is considered fully earned by Big Apple Bagels and is nonrefundable to the developer.
This means that a prospective Big Apple Bagels developer should be aware that once the Development Agreement is signed and the development fee is paid, the fee will not be returned under any circumstances. This is a standard practice in franchising, as the fee is intended to compensate the franchisor for the initial costs and efforts associated with granting development rights.
It is important for potential developers to carefully consider their development plans and financial capabilities before entering into a Development Agreement with Big Apple Bagels, as they will be obligated to pay the nonrefundable development fee. Developers should conduct thorough due diligence and seek professional advice to ensure they fully understand the terms and conditions of the agreement and the financial implications of the nonrefundable fee.